Mortgage Rates Up on Week
Mortgage rates are up this week due to inflation concerns and financial liquidity issues. The Mortgage Bankers Association (MBA) today released its Weekly Mortgage survey, and the average contract interest rate for 30-year fixed-rate mortgages increased to 6.24 percent from 6.17 percent, with points increasing to 1.12 from 1.06 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.78 percent from 5.7 percent, with points increasing to 1.12 from 1.06 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 6.87 percent from 6.8 percent, with points decreasing to 1.42 from 1.44 (including the origination fee) for 80 percent LTV loans.
Investors continue with a lackluster appetite for mortgages. The culprit seems to be overall investor nervousness about the financial sector and the housing market. Although bond yields are still at attractive levels for mortgage rates, investors are only enticed to the party with a higher mortgage yield, which causes mortgage rates to rise.
Pending Home sales might be on the rise, according to the National Association of Realtors. The NAR's index of pending home sales, which is seen as a bellwether, rose about 6 percent from March to April. The April pending home sales index was 88.2, compared to 83 in March. So April's index was up from the previous month, but it was down 13 percent from the April 2007 figure of 101.5.
Many feel that the pending home sales numbers are not much to get excited about, as they are an indication of banks letting foreclosed homes go at rock bottom prices. Even so, this may be a good sign that buyers are ready to pull the trigger in the housing market. The big issue of concern is that home values do not diminish due to fire sales.
All in all, another crazy week for the mortgage market with more in store.
May the Mortgage Rates be with You!
Refinance Tool Box
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.78 percent from 5.7 percent, with points increasing to 1.12 from 1.06 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 6.87 percent from 6.8 percent, with points decreasing to 1.42 from 1.44 (including the origination fee) for 80 percent LTV loans.
Investors continue with a lackluster appetite for mortgages. The culprit seems to be overall investor nervousness about the financial sector and the housing market. Although bond yields are still at attractive levels for mortgage rates, investors are only enticed to the party with a higher mortgage yield, which causes mortgage rates to rise.
Pending Home sales might be on the rise, according to the National Association of Realtors. The NAR's index of pending home sales, which is seen as a bellwether, rose about 6 percent from March to April. The April pending home sales index was 88.2, compared to 83 in March. So April's index was up from the previous month, but it was down 13 percent from the April 2007 figure of 101.5.
Many feel that the pending home sales numbers are not much to get excited about, as they are an indication of banks letting foreclosed homes go at rock bottom prices. Even so, this may be a good sign that buyers are ready to pull the trigger in the housing market. The big issue of concern is that home values do not diminish due to fire sales.
All in all, another crazy week for the mortgage market with more in store.
May the Mortgage Rates be with You!
Refinance Tool Box
posted by Jim Bisnett at
4:05 PM
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