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 Zillow.com 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 Bankrate.com 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 Zillow.com are for loans for the most creditworthy borrowers (FICO score of 720 or higher).