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Don’t adjust your monitors.
Don’t rub your eyes.
According to the weekly Primary Mortgage Market Survey from Freddie Mac, mortgage rates traveled north instead of south for the first time in seven weeks.
I know. I’m in as much disbelief as you are.
The question I ask you is pretty simple – are you still waiting to refinance or lock in with a new mortgage? You shouldn’t.
Now that rates have ticked upward for a week, who knows what the future is going to hold? The common understanding within the industry is that rates have bottomed out already, but how do we know that they won’t start ticking upward consistently?
Just some food for thought for you.
At any rate (pun most definitely intended), here are this week’s numbers.
30-year fixed-rate mortgages jumped up to 3.55% with 0.7 points from last week’s record low of 3.49% with 0.7. This snaps a solid seven-week stretch of drops, and marks only the sixth time in 2012 that 30-year fixed-rate mortgages averaged more than the previous week. Last year at this time, 30-year fixed-rate mortgages averaged 4.39%.
15-year fixed-rate mortgages averaged 2.83% with 0.6 points, up from last week’s record low of 2.80% with 0.7 points. Although the slight jump is disheartening, don’t forget that 15-year fixed-rate mortgages have averaged less than 3.00% wince May 31, 2012. 12 months ago, 15-year fixed-rate mortgages averaged 3.54%.
5/1-year ARMs jumped up to 2.75% with 0.6 points from last week’s 2.74% with 0.6 points, while 1-year ARMs dropped to 2.70% with 0.4 points from last week’s 2.71% with 0.5 points.
Last year at this time, 5/1-year ARMs and 1-year ARMs averaged 3.18% and 3.02%, respectively.
With mortgage rates ticking up, I’m really curious as to what Frank Nothaft, chief economist and vice president from Freddie Mac, had to say.
He explained, “Recent announcements in additional debt relief for the Eurozone and mixed domestic economic indicators added upward pressure on Treasury yields as well as mortgage rates this week. The U.S. economy grew at a 1.5 percent annualized rate in the second quarter, slower than the 2.0 percent growth in the first quarter with consumer spending June unchanged from May. However, consumer confidence rose in July for the first time in five months according to The Conference Board.”
What’s this?? A double dosage of Nothaft’s notes this week?!
He continued by saying, “Housing data were also assorted. The S&P-500 Case Shiller 20-City Composite Index rose for the fourth consecutive month in May with 18 of the cities experiencing positive growth. Nonetheless, pending home sales fell 1.4 percent in June, below the market consensus forecast of a 0.3 percent increase, and May’s figure had a downward revision.”
Like I said before, no one knows if this will be a trend, so be sure to act as soon as possible before rates go up even further!