Last week mortgage-backed securities (MBS), which most directly influence interest rates, rallied and cosequently mortgage rates decreased. A major indicator of the fall in mortgage rates was the Fed Chair Janet Yellen’s testimony before the Congress. Yellen said that the organization remains patient about raising interest rates and the Fed expects the economy to improve further.
On the other hand, housing giant Freddie Mac announced last week, that the average interest rate on the 30-year fixed mortgage surged to 3.8%, an increase of 4 basis points compared to data from a week earlier. The lowest rate on record this year was back in February, when the 30-year fixed loan was hovering at 3.59%, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS).
The MBS looks flat today and we don’t anticipate major changes in mortgage rates. A couple of domestic economic data was released earlier this Monday, but seemingly they don’t have a big influence on financial markets. The latest data from the Commerce Department showed, that personal income rose 0.3% in January, while consumer spending declined 0.2%. These figures are basically in line with expectations. The ISM Manufacturing Index hit 52.9 in February, a lower figure than the consensus expectation of 53.2. Still, this data signals expansion, because any reading above 50 indicates expansion of the economy.
As we mentioned earlier, none of these domestic economic reports have significant impact on today’s mortgage rates. One upcoming economic data, which we should keep an eye on, is Friday’s employment report. The data, if significantly stronger or weaker than expected, potentially could have an immediate impact on mortgage interest rates. So if you are looking to get a mortgage, you may want to consider locking a rate ahead of Friday’s employment report to be on the safe side.
Looking at today’s mortgage interest rates at major U.S. lenders, we haven’t noticed big changes in 30-year and 15-year fixed mortgage rate levels. At Bank of America (NYSE:BAC), the 30-year fixed home purchase loan is available today at a rate of 3.625%. The 15-year fixed counterpart carries 2.875% interest cost. In the refinance loan arena the 30-year fixed home refinance mortgage has stayed firm at 3.875% on Monday. BofA’s 15-year refinance loan, which features a fixed interest rate through the term of the mortgage, now hovers at 3.000%.
Another U.S. lender, SunTrust (NYSE:STI) updated its home loan information for today, which shows, that the 30-year fixed conventional home loan is now quoted at 3.8%. The 15-year version of this home purchase mortgage is coming out at 3.125%.
Moving on to Wells Fargo (NYSE:WFC), the 30-year conforming home mortgage plans are starting at a rate of 4.000%. A shorter-term fixed loan, the 15-yer FRM is offered for as low as 3.375%. The lender’s refinance loan portfolio includes the long-term, 30-year fixed mortgage, which starts at a rate of 4.125%. Borrowers, who lean towards the 15-year refinance loan, can expect to pay 3.500% interest cost.
The above mentioned interest rates are subject to change and are not guaranteed. In order to search for live mortgage rate quotes from some of the top U.S. lenders, please click on the link below. To calculate your monthly mortgage payment, feel free to use our featured mortgage calculator.