Mortgage rates continued lower on Friday, as concerns over Greece’s bailout deal intensified, which pushed investors to safe haven assets, such as mortgage bonds. Following a rally on Thursday, Greece’s stocks and bonds sold off on Friday, as fear has been growing among investors, that the country could eventually default on payment. These type of economic news from the Eurozone have had a significant impact on U.S. treasuries and indirectly on mortgage rates in the last few weeks. On Friday, the yield on the benchmark 10-year treasury note slipped to 2.363% compared with Thursday’s 2.382% level. Bonds started the day in weaker territory, as May’s wholesale inflation figures missed the consensus expectation and markets reacted on the news. However, later on the bond market improved, which is why you may see slightly lower mortgage interest rates at your lender today.
With regards to current national mortgage rates, Freddie Mac’s latest weekly survey revealed that the 30-year fixed mortgage crossed the 4% threshold, averaging 4.04% this week. The current rate is up by 17 basis points compared to 3.87% that it held a week earlier, marking the biggest weekly increase since late 2013. The federal agency’s Primary Mortgage Market (PMMS) survey also showed, that the 15-year fixed loan averaged a rate of 3.25% this week, a sharp increase compared to the former 3.08% that it carried before.
Bankrate’s own mortgage survey showed similar results, with the 30-year fixed mortgage now hovering at 4.15%, an uptick of 12 basis points since last week. The 15-year FRM drifted higher as well, this type of loan is coming out at 3.39%, according to Bankrate’s survey. As far as the 5/1 ARM is concerned, the interest rate climbed by 6 basis points to 3.24% this week.
Now, looking at today’s economic data, the U.S. producer price index rose 0.5% in May, the fastest pace in nearly 3 years, the Labor Department’s latest report showed. This also marks the biggest monthly gain since September 2012. On the other hand, core prices which strip out food and energy categories, were up 0.1% last month.
As we reported yesterday, the World Bank expressed its concerns over the Federal Reserve’s planned rate hike, saying that a raise in short-term interest rates this year could lead to such market volatility that was seen back in the summer of 2013. The World Bank is not the only organization which is against a rate hike this year. Just last week, the IMF warned the Fed to delay hiking rates until early 2016. The financial organization believes that the U.S. central bank should hold off on increasing rates until the economy is back on track and target inflation levels are met.
The general consensus is that a lift in short-term interest rates is unlikely to happen in June or July, even that the recent batch of jobs, manufacturing and retail sales data came out stronger-than-expected. According to a new survey by Bloomberg News, economists see a 40 percent chance that the U.S. central bank will hike rates beyond September, if the labor market stalls and target inflations levels aren’t reached. Still, the majority of analysts forecasts a rate hike to take place in September.
The good news for borrowers, that it’s not too late to buy a new home or refinance an existing mortgage. Although, current mortgage rates are higher compared to those a week earlier but from a historical perspective interest rates are still very attractive. If you are looking to get a mortgage these days, we advise you to lock sooner rather than later, considering the current upward trends in mortgage rates. There’s always a chance that mortgage rates will tumble in the near future, but current trends and market sentiment point toward higher rates.
Looking at today’s refinance rates at some of the nation’s top loan providers, Bank of America’s (NYSE:BAC) 30-year fixed mortgage for home refinancing is coming out at a rate of 4.125% on Friday. Borrowers, who are interested in refinancing with the 15-year FRM can expect to pay 3.125% interest cost.
Over at Citi Mortgage (NYSE:C), the standard 30-year fixed refi mortgage is offered for as low as 4.125%, according to the latest loan information. The 15-year fixed counterpart is another possible option and it’s currently hovering at 3.375%.
At another major lender, Chase (NYSE:JPM), mortgage interest rates are holding firm today. The lender’s home refinance loan portfolio includes the 30-year FRM, which is available this Friday at a rate of 4.125%. In case of the 15-year fixed home refinance loan plans, they start at a rate of 3.375%, the latest data revealed.
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.