The 30Year FixedRate Mortgage Rises Above 4 Percent

first_img in Daily Dose, Data, Featured, News, Origination June 11, 2015 567 Views In response to the positive Bureau of Labor Statistics (BLS) employment data released on Monday, the 30-year fixed-rate mortgage rose above 4 percent this week for the first time since November 2014. Freddie Mac’s Primary Mortgage Market Survey (PMMS), revealed that the average fixed mortgage rates averaged 4.02 percent for the week ending June 11, 2015.”Mortgage rates rose above 4 percent for the first time since November 2014 as Treasury yields surged,” said Len Kiefer, deputy chief economist at Freddie Mac. “Markets are responding to strong employment data. In May, the U.S. economy added 280,000 jobs. Moreover, job openings surged to 5.4 million in April, up over 20 percent from a year ago.”Last week’s mortgage rates averaged 3.87 percent, while this week’s rates averaged 4.04 percent with an average 0.6 point for the week, according to Freddie Mac. At this time a year ago, the 30-year FRM averaged 4.20 percent.According to the survey, the 15-year FRM this week averaged 3.25 percent with an average 0.6 point, up from last week when it averaged 3.08 percent. A year ago at this time, the 15-year FRM averaged 3.31 percent.As consumers rush to purchase homes as interest rates rise, mortgage applications also saw an increase this week. Yesterday, the Mortgage Bankers Association (MBA) determined that mortgage applications increased by 8.4 percent for the week ending June 5, 2015 from one week earlier, according to data from their Weekly Mortgage Applications Survey.”Mortgage application volume rebounded strongly in the week following the Memorial Day holiday, indicating that the holiday had a larger impact on business activity than originally assumed,” said Mike Fratantoni, MBA’s chief economist. “Comparing volume over the past two weeks, purchase activity is up over 6 percent, while refinance activity is down 5 percent. Strong job gains in May and initial signs of wage growth are supporting the purchase market.”Zillow also reported yesterday that the 30-year fixed mortgage rate on Zillow Mortgages is currently at an eight-month high of 3.96 percent, up eighteen points from this time last week.”Rates jumped sharply last week – first on the heels of news that the European Central Bank’s bond buying program may end sooner than expected, then an exceptionally strong U.S. jobs report,” said Erin Lantz, VP of mortgages at Zillow. “We expect less volatility in this data-light week.” Sharecenter_img The 30-Year Fixed-Rate Mortgage Rises Above 4 Percent 30-Year Fixed Mortgage Rates Bureau of Labor Statistics Freddie Mac Primary Mortgage Market Survey 2015-06-11 Staff Writerlast_img

Leave a Comment

Your email address will not be published. Required fields are marked *