Mortgage Rates Head Even Lower, Offering Home Buyers a Breather - Rates for home loans fell for a second straight week, offering a respite for home buyers and owners even as stock investors got hammered in turbulent markets.
The 30-year fixed-rate mortgage averaged 4.40% during the week ending April 5, according to Freddie Mac’s weekly survey, out Thursday. That was down from 4.44% a week ago. The 15-year fixed-rate mortgage averaged 3.87%, down three basis points during the week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage fell four basis points to average 3.62%.
Those rates don’t include fees associated with obtaining mortgage loans.
Mortgage rates follow the path of the 10-year U.S. Treasury note TMUBMUSD10Y, -1.97% , with a bit of a delay. Bond yields touched a recent high in late March, then spiralled downward as fears of a global trade war sent investors piling into the safety of bonds. Bond yields fall as prices rise.
Now, Treasurys are inching back up as geopolitical concerns recede, and mortgage rates may follow suit.
Housing analysts are keeping an eye on rising rates. Higher mortgage costs will make an already pricey housing market even more unaffordable. But there’s another upside to the brief dips. Roughly 2.6 million Americans can still benefit from a lower-interest-rate refinance, according to an analysis that real estate data provider Black Knight conducted for MarketWatch.
Black Knight’s February Mortgage Monitor report noted that a growing share of refinancings are now “cash-out” — a process that allows homeowners to take out a new mortgage that’s larger than the one they currently have and pocket the difference.
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