Mortgage rates continued their upward spiral on Thursday, which marks the third straight day of higher interest rates. Although, the bond market, which dictates mortgage rate movement, managed to erase some of the losses in the afternoon, following some weakness in the morning, but not all lenders have passed along the gains. The bottom line is that mortgage pricing improved, but remained within recent ranges. Currently, the average lender is quoting 4.25% for 30-year fixed mortgages, with several lenders up to 4.375%, while a few down to 4.125%.
Treasury yields fell across the board during Thursday’s trading session. The yield on the 10-year treasury bond, which is a bedrock of global finance, dropped to 2.51% during the trading day. This marks a 2 basis points improvement over the data from a day earlier. As mortgage rates typically follow the lead of the 10-year treasury yield, you may see slight improvements in interest rates at some lenders this Friday morning. However, the changes most likely would be rather marginal and they would affect closings costs as opposed to contract rates. The yield on the long-term 30-year treasury bond also closed Thursday’s trading day at a lower level, in the form of 3.08%, down 2 basis points from a day earlier.
This Friday morning, mortgage-backed securities (MBS) are slightly in the green, which could be a good sign for mortgage rates, following several days of weakness. If it’s any consolaton current mortgage rates are still lower than those seen in mid-December, but recent trends are clearly favoring a move toward higher rates.
Current mortgage rates are increasing nationwide, according to government-sponsored mortgage-buyer, Freddie Mac’s latest data. The federal agency’s weekly Primary Mortgage Market Survey (PMMS) released Thursday, showed that the average rate on the 30-year fixed mortgage was 4.19% in the week ended January 26. This translates to a 10 basis points surge compared to the average rate on the 30-year FRM a week earlier. Moreover, on average lenders were offering the 15-year fixed mortgage at a rate of 3.40%, up 6 basis points compared to data in the prior week. On the other hand, the avergage rate on the 5-year ARM improved 1 basis point to 3.20% last week, Freddie Mac’s data revealed.
With regards to today’s economic headlines, orders for all durable goods unexpectedly fell 0.4% in December, mainly because of a sharp drop in demand for military aircraft. On the other hand, core capital goods orders increased 0.8% last month.
The U.S. economy lost momentum in the fourth quarter of 2016, according to the Commerce Department’s data released Friday. The economy grew at a pace of 1.9% in Q4, a significant decline from a 3.5% increase in the the third quarter. This is a worse-than-expected figure, as economists had forecast an advance of 2.2% for last quarter’s GDP.
Earlier this Friday, The University of Michigan released its final consumer confidence reading for January and the results show, that consumer confidence improved to 98.5 this month. This is a better figure compared to December’s reading of 98.2, indicating that currently Americans are more upbeat about their economic outlook.
Today’s mortgage rates at top lenders look similar to those seen on Thursday. At Bank of America (NYSE:BAC), the 30-year fixed convetional home loan is available today at a rate of 4.500%. The lender’s 15-year fixed home purchase loan can be secured for as low as 3.750%. BofA’s mortgage loan porftolio also features a number of loans for home refinancing. The 30-year fixed rate refinance loan can be locked in for as low as 4.625%, according to the latest mortgage information. Borrowers, who believe refinancing over 15-years is a more suitable option, will see the 15-year FRM being offered today at a rate of 3.625% at Bank of America.
Over at another top U.S. lender, Wells Fargo (NYSE:WFC), the 30-year fixed home purchase mortgage is coming out at a rate of 4.500% on Friday. The shorter-term, 15-year fixed conventional home loan is up for grabs at a rate of 3.750%. Mortgage shoppers who heading over to Wells Fargo’s refinance loan program, will see the standard 30-year fixed refi loan being quoted at a rate of 4.500%. Those looking to secure the 15-year home refinance loan, which comes with a fixed interest rate over the term of the mortgage, can expect to pay a rate of 3.750%.
Citibank (NYSE:C) also provides several home mortgage loans for interested borrowers. Today, the 30-year conventional home loan can be locked in at a rate of 4.25%. For home refinancing puroises, Citi’s 30-year FRM could be a suitable option for some, as it currently has an asking rate of 4.375%.
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.