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Mortgage Rates Declined This Week According to Bankrate.com Weekly National Survey

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NEW YORK, NY – Mortgage rates declined modestly this week breaking a three-week string of increases, with the benchmark 30-year fixed mortgage rate slipping to 3.90 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.17 discount and origination points.

The larger jumbo 30-year fixed dipped to 3.81 percent, and the average 15-year fixed mortgage retreated to 3.13 percent. Adjustable mortgage rates were on the downswing also, with the 5-year ARM sinking to 3.36 percent and the 7-year ARM dropping to 3.52 percent.   

Mortgage rates broke a streak of three consecutive weekly increases, retracing part of the previous week’s go. Bond yields and mortgage rates dipped in the days following the Federal Open Market Committee meeting, where the Fed was more dovish than expected given the low level of unemployment and uptick in inflation rates. With the FOMC ratcheting back their expectations of four interest rate hikes this year to two interest rate hikes, there was a modest recalibration of bond yields which helped bring mortgage rates down. Mortgage rates are closely related to the yields on long-term government bonds.

At the current average 30-year fixed mortgage rate of 3.90 percent, the monthly payment for a $200,000 loan is $943.34.

SURVEY RESULTS

30-year fixed: 3.90% — down from 3.93% last week (avg. points: 0.17)
15-year fixed: 3.13% — down from 3.17% last week (avg. points: 0.13)
5/1 ARM: 3.36% — down from 3.43% last week (avg. points: 0.18)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets.

For a full analysis of this week’s go in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. The majority of panelists – 58 percent – predict that mortgage rates will remain more or less unchanged in the coming week. Among other participants, 25 percent forecast an increase and just 17 percent expect mortgage rates to keep falling.

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Fed Chair Yellen has a mini revolt on her hands

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(RECAP: Fed Chair Janet Yellen has something of a mini revolt on her hands. Four of the 17 members of the Federal Open Market Committee have now publicly indicated their disagreement with the dovish guidance in last week’s policy statement and in comments from Fed Chair Yellen at her press conference. The latest dissenter is Patrick Harker, the new president of the Philadelphia Fed, who said in a speech Tuesday night that the Fed should “get on with” rate hikes and consider another go in April. Only one of the four dissenters is a voter this year, suggesting that Yellen has the votes she needs if she wants to keep rates unchanged at the April meeting.)

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Study: Millennials really want homes, but are waiting … for now

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(RECAP: They’re graduating from college, starting new jobs, getting married and having kids. But one life goal that’s eluding a lot of Millennials is homeownership, according to a new NerdWallet analysis. It’s not that young people don’t want to own homes. In fact, most Millennials want to buy a home but haven’t yet done so because they reckon they can’t afford it, the analysis found. In other words, Millennials want the stability and freedom that homeownership affords, but they worry they won’t qualify for an affordable loan. In its analysis, personal finance website NerdWallet looked at a number of surveys and data from government agencies and Fannie Mae to examine commonly held beliefs about the decline in homeownership among younger first-time buyers.)

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