Mortgage rates resume short-term downward drift, sort of

Sandy Smith's picture

With the ongoing turmoil over Greece's dance with default roiling bond and stock markets worldwide, mortgage rates have more or less climbed back on the down escalator they got off of briefly last week.

As the possibility that Greece may not receive the next scheduled infusion of bailout funds is very much real, investors are behaving as they have been for much of this year - pulling money back out of riskier bonds and stocks and parking the cash in U.S. Treasury bonds. The inflow renews the downward pressure on interest rates that grew starting in August and also amplifies Federal Reserve moves to drive down long-term interest rates by replacing short-term Treasuries with longer-term ones in its portfolio. Also, by resuming direct purchases of mortgage-backed securities, the Fed is both injecting liquidity into the mortgage market and helping keep mortgage rates low.

Some key rates drift lower while others rise on overnight surveys

The result of all this is the performance recorded on the overnight surveys. The upward blip they displayed last week has turned back into a bidirectional movement, with some rates heading back lower while others continue to rise.

Yesterday's average afternoon mortgage rates on the National Mortgage Marketplace, with changes from Thursday and last week, are: 30-year fixed, 3.79% (-9 points, -7 points); 15-year fixed, 3.18% (unchanged, +1 point); 5-year ARM, 2.72% (-2 points, -2 points). Today's real-time rates as of 8 a.m., with changes from yesterday morning and afternoon, are: 30-year fixed, 3.71% (-11 points, -8 points); 15-year fixed, 3.12% (-5 points, -6 points); 5-year ARM, 2.53% (-20 points, -19 points).

This morning's average mortgage rates on the overnight survey, with changes from Friday and one week ago, are: 30-year fixed, 4% (-7 points, -5 points); 15-year fixed, 3.35% (-1 point, +2 points); 5-year ARM, 3.02% (+1 point, +3 points); 30-year fixed refinance loan, 4.1% (-8 points, -5 points).

One basis point equals one hundredth of a percentage point. Rates reported in this article assume good credit (FICO score of 650 or higher) and a 20% down payment. Morning rates from are for loans for the most creditworthy borrowers (FICO score of 720 or higher).


Submitted by stock market today (not verified) on
Refinancing may save some serious money today as the mortgage rates are so low and it looks like they may go down another half a percent. House prices are the lowest in the past 20 years. If people qualify for home loans they should take advantage of these opportunities. There is no reason anyone should pay 6 or 7 percent mortgage rate given the refinancing opportunities today.

Submitted by Stock trader (not verified) on
Interestingly today's mortgage rates are lowest since the 1950s. While there were low for weeks, it can be said that the long term 30-year fixed mortgage home loan rates have never been any lower. Freddie Mac says today's average 30-year rate is even lower than the average 20- or 25-year rate was in the 1950s.

Submitted by Mortgage seer (not verified) on
But the LA Times reports that the 30-year fixed mortgage rates move up after reaching record lows. According to the Los Angeles-based newspapers the "30-year loan was offered at 4.01% on average this week for solid borrowers who paid 0.7% of the loan balance upfront in lender fees and points, according to a Freddie Mac survey. The rate had dropped below 4% late last week."

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