Current Mortgage Rates Hold at High Levels

Mortgage rates moved higher this week. They are holding fairly steady at those levels as we finish out the week.

It seems as though they are more likely to move higher than lower over the coming weeks so anyone looking to buy a home or refinance their current mortgage is probably going to be better off locking in a rate soon. Read on for more details.

Where are mortgage rates going?   

Rates stay at high levels to finish the week

Mortgage rates moved higher this week as the yield on the 10-year Treasury note jumped above the significant psychological threshold of 3.0%.

Here are the numbers from this week’s Freddie Mac Primary Mortgage Market Survey:

• The average rate on a 30-year fixed rate mortgage jumped up eleven basis points to 4.58% (0.5 points)
• The average rate on a 15-year fixed rate mortgage went up eight basis points to 4.02% (0.4 points)
• The average rate on a 5-year adjustable rate mortgage moved up seven basis points to 3.74% (0.07 points)

Here is what the Freddie Mac Economic and Housing Research Group had to say about mortgage rates this week:

“Mortgage rates increased for the third consecutive week, climbing 11 basis points to 4.58 percent. Rates are now at their highest level since the week of August 22, 2013. Higher Treasury yields, driven by rising commodity prices, more Treasury issuances and the steady stream of solid economic news, are behind the uptick in rates over the past week.

Despite the increase in borrowing costs, demand for home purchase credit remains solid. The Mortgage Bankers Association reported in their latest mortgage applications survey that activity was up 11 percent from a year ago.”

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Rate/Float Recommendation 

Lock now before rates get higher 

Right now, it’s looking like mortgage rates are going to hold at present levels or move higher. That means it’s likely in your best interest to lock on a rate sooner rather than later. The longer you want, the greater the chance that rates will be higher when you finally take action.

Learn what you can do to get the best interest rate possible.  

Today’s economic data: 

GDP

The first estimate for first-quarter GDP came in at 2.3%. That’s above the mark of 2.0% that analysts had predicted.

Employment Cost Index

The ECI rose 0.8% quarter of quarter. putting it at 2.7% year over year.

Consumer Sentiment

Consumer sentiment came in at 98.8 in April.

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Notable events this week:

Monday: 

• Chicago Fed National Activity Index
• PMI Composite Flash
• Existing Home Sales

Tuesday:    

• S&P Corelogic Case-Shiller HPI
• FHFA House Price Index
• New Home Sales
• Consumer Confidence
• Richmond Fed Manufacturing Index

Wednesday:      

• EIA Petroleum Status

Thursday:        

• Durable Goods Orders
• International Trade in Goods
• Jobless Claims

Friday:       

• GDP
• Employment Cost Index
• Consumer Sentiment

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via Zero Mortgage Insurance