After falling appreciably yesterday, mortgage rates improved on Tuesday, albeit slightly. While bond markets were generally weaker, today’s improvements are more to do with yesterday’s strong underlying market conditions, that weren’t entirely priced into lenders’ rate sheet back on Monday. However, lenders passed along the improved pricing earlier this Tuesday, which is the reason why you may see slightly lower mortgage rates at your lender. Although, the last two days of gains are a welcome change for mortgage rates, following an upward movement for the most of May and June, it looks like rates hit a wall on Tuesday. If you have been hesitating to secure a rate in the last couple of days, now this is a good time to lock in today’s gains.
Following a strong demand on Monday, that seen the yield on the benchmark 10-year treasury note falling 16 basis points to 2.33%, the yield on the same government bond hit 2.35% at the end of Tuesday’s trading session. The 30-year treasury yield was also slightly higher at the close of the trading day, finishing at 3.11%, a 2 basis points uptick compared with Monday’s data.
Headlines on the Greek debt crisis continue to drive financial markets and cause price swings, so it will be interesting to see how the ongoing events in the Eurozone will impact U.S. mortgage rates. It’s very difficult to predict where rates could be heading from here, but what’s certain at this point, that there’s plenty of market volatility ahead. If Greece eventually leaves the Eurozone, it could shake up global markets and such an environment could possibly push U.S. mortgage rates to lower territories. On the other hand, if Greece seals a debt deal with its creditors in the near future, and the U.S. economic outlook remains bright, it would almost certainly cause further spikes in mortgage rates.
Now, moving on to the domestic economic calendar this Tuesday, three pieces of data were released. One of them is the S&P/Case-Shiller Home Price Index for April, which showed that home prices jumped 4.2% nationwide in April year-over-year, which is a slightly weaker figure compared to an increase of 4.3% back in March. The 10-city and 20-city indexes show a similar trend, as home price growth slowed down in April compared to March’s reading. The 10-city index posted a gain of 4.6% year-over-year, while the 20-city index improved 4.9% from a year earlier, according to the latest data from S&P Dow Jones Indices. Nevertheless, we should note that these figures don’t take into account the impact of rising mortgage interest rates. As rates started to tick up in May, it will be interesting to see their impact on home prices in future S&P/Case-Shiller reports.
Economic activity in the Midwest region contracted this month, the latest Chicago PMI revealed. The Chicago Purchasing Managers Index for June came in at 49.4, missing the consensus expectation of 50.6. Although, the current reading is better than May’s figure (46.2), but it still indicates contraction in economic activity.
The Conference Board’s Consumer Confidence Index soared to 101.4 in June, following a modest gain (94.6) in May. Previously, economists had projected a modest rise to 97.4 for June’s data. Overall, Americans had a more upbeat outlook on business and employment conditions this month, due to a steady improvement in the labor market, rising incomes and stable gasoline prices.
All of today’s domestic economic data was overshadowed by the headlines about the Greek debt crisis, which remains a main market driver. As we reported over the weekend, there’s one influential economic data that’s scheduled for release this week, which is the upcoming Non-Farm Payrolls report. If June’s NFP comes with stronger-than-expected numbers, all of this week’s gains could be evaporated, and mortgage rates could take an abrupt turn toward higher levels. On the other hand, if the employment data shows a significant weakness in the labor market, mortgage rates could benefit.
Looking at today’s mortgage rates at the nation’s top loan providers, at Bank of America (NYSE:BAC), the 30-year fixed conventional home loan can be secured at a rate of 4.000% on Tuesday. The bank’s shorter-term, 15-year fixed mortgage is up for grabs at a rate of 3.000%. Those looking to obtain a long-term FHA mortgage, may want to take a look at BofA’s 30-year FHA-insured mortgage, which is offered for as low as 3.875%, according to the latest data.
Under Bank of America’s refinance mortgage loan program, the 30-year FRM is coming out at a rate of 4.125%. A shorter-term alternative, the 15-year fixed refi mortgage could see balances cleared at a rate of 3.125% this Tuesday.
Over at Quicken Loans, the standard 30-year fixed mortgage loan, which is suitable for home refinancing purposes, is available at a rate of 4.125%. Borrowers, who are interested in locking the 15-year refinance loan, can expect to pay 3.125% interest cost.
At California-headquartered major lender, Wells Fargo (NYSE:WFC), the 30-year home purchase loan is currently advertised at a rate of 4.250%. The 15-year fixed counterpart is another possible alternative, and today it’s up for grabs at a rate of 3.500%.
The lender has several home refinancing options, including the long-term, 30-year fixed refinance mortgage, which can be obtained at a rate of 4.375% on Tuesday. At Wells Fargo, the popular 15-year FRM plans are starting at 3.500%, the updated loan information showed.
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.