Mortgage rates drifted slightly higher across the board on Friday, following weakness in the bond market. U.S. treasury bonds started the day in negative territory, however, after Donald Trump’s inauguration bonds were able to recoup the losses. Still, many lenders were slow to pass along the improvements, which is why current mortgage rates are higher compared to those on Thursday. According to our observations, the most prevalenty quoted rate for the 30-year fixed mortgage is currently 4.25%, with some lenders offering this type of loan as high as 4.500%.
Yields on key short-term and long-term U.S. government bonds inched higher during Friday’s trading session. The benchmark 30-year treasury yield finished the trading day at 2.48%, which marks a 1 basis point uptick compared to Thursday’s data. A weekly comparison of 10-year treasury yields, shows that the current yield on the aforementioned government bond is now 8 basis points higher, than a week earlier. Mortgage rates and 10-year treasury bonds have a strong correlation. When the yield on the 10-year note declines, mortgage rates head in the same direction. However, when the 10-year treasury yield surges, mortgage rates are often trending higher. Now, looking at the long-term 30-year treasury yield, it closed Friday’s trading day at 3.05%. A day earlier this type of treasury note was carrying a yield of 3.04%.
This Monday morning pricing on mortgage-backed securities (MBS) are in the red, which is generally a bad sign for mortgage rates. If MBS weakens throughout the day, mortgage interest rates may finish the day higher.
Current mortgage rates are lower nationwide, according to McLean,VA-based federal agency, Freddie Mac’s data. The mortgage-buyer’s latest Primary Mortgage Market Survey (PMMS) showed, that on average, lenders were offering the 30-fixed mortgage at a rate of 4.09% in the week ended January 19, which translates to a 3 basis points decline compared to data from a week earlier. As far as the 15-year fixed mortgage is conerned, the interest rate dropped to 3.34% from 3.37 in the prior week. With regards to the 5-year adjustable-rate mortgage, the current average mortgage rate is 3.21%, a 2 basis points slide from a week earlier, Freddie Mac’s survey revealed.
This week’s economic calendar will be packed with a slew of data, including the preliminary reading on Q4 GDP, as well as fresh reports on existing home sales, new home sales, initial jobless claims, durable goods orders and revised consumer sentiment. As always, investors and traders will be closely watching the incoming data for fresh indications on the health of the economy.
Monday is going to be silent in terms of influential economic data. However, Tuesday will bring us a fresh reading on December’a existing home sales. According to the latest estimations from economists, existing home sales likely dropped 1.1% last month to a seasonally adjusted annual rate of 5.6 million. Back in November, existing home sales fell 2.5%, a sign of weakening momentum in the housing market.
New home sales data for December will see the light of day on Thursday. According to housing market experts, home sales likely declined 1% to a seasonally adjusted annual rate of 586,000 units in December. In November, purchases of newly-built U.S. homes climbed 5.2% to a seasonally adjusted annual rate of 592,000.
The Commerce Department will release its initial reading on fourth quarter GDP on Friday. Economists believe that the U.S. economy grew slower (2.2%) in the last quarter of the year, compared to the third quarter, when the GDP advanced 3.5%.
The consensus expectation is that durable goods orders likely increased 2.5% in December, following a 4.5% decrease in November. When transportation orders taken out of the equation, orders estimated to have increased 0.3%. The Commerce Department will release its report on durable goods orders on Friday.
The revised reading of the University of Michigan’s Consumer Sentiment Index for January is another key economic data, which is scheduled for release on Friday. If the new outlook shows some improvements compared to preliminary reading (98.1), it could signal that Americans are more upbeat about the economy.
Coming back to today’s mortgage rates, at U.S. top lender Bank of America (NYSE:BAC), the 30-year fixed mortgage loan for home purchase is quoted at a rate of 4.500%. The same loan provider offers the shorter, 15-year fixed home loan at a rate of 3.750%. Looking at BofA’s home refinance loan portfolio, the standard 30-year FRM is carrying a rate of 4.625%. Borrowers, who believe the 15-year fixed refinance loan fits the bill better, can expect to pay 3.625% interest.
Moving on to Chase (NYSE:JPM), the lender’s mortgage loan program includes a wide range of products, including the 30-year fixed home purchase mortgage. Currently, this type of loan is available at a rate of 4.250%. The 15-year home loan, which comes with a fixed interest rate during the term of the loan, can be secured for as low as 3.500%. Those looking at home refinacing options, may want to take a look at Chase’s 15-year FRM, which starts at a rate of 4.250%. The 15-year version of the lender’s home refinance loan can be locked in at a rate of 3.500%, according to the latest mortgage information.
Over at San Francisco-headquartered top lender, Wells Fargo (NYSE:WFC), the 30-year fixed convetional loan for home refinancing is up for grabs at a rate of 4.625%. In case of the popular 15-year home refi loan, borrowers can expect to pay 3.625% interest.
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.