Mortgage rates fall for the third straight week in the week ending 15.th July
After declining 8 basis points from the previous week, 30-year fixed rates fell 2 basis points to 2.88%.
From 21st Rates on 30-year mortgages for April only exceeded the 3% mark once prior to the current pullback.
Compared to last year, 30-year fixed rates are down 10 basis points.
30-year fixed rates are still down 206 basis points from the last peak in November 2018 of 4.94%.
Economic data for the week
The first half of the week was the busiest in the US economic calendar.
The main statistics included data on consumer and wholesale inflation for June.
The statistics were biased in the positive direction, which was reflected in the riskier assets during the week.
Inflationary pressures in the US increased markedly at the end of the quarter, raising concerns about the Fed’s policy and economic outlook.
In June, the annual inflation rate increased from 5.0% to 5.4%, while the core annual inflation rate increased from 3.8% to 4.5%.
Wholesale inflationary pressures were also on the rise, indicating further increases in consumer prices in the near future. In June, the annual wholesale inflation rate accelerated from 6.8% to 7.3%.
While the statistics weighed on riskier assets, Fed Chairman Powell’s testimony to lawmakers should have eased market tensions in the middle of the week.
The Fed chairman spoke about the Fed’s readiness to allow inflation to rise in the short term in order to avoid making an erroneous political decision.
Ultimately, however, market concerns about the sustainability of the global economic recovery, the continued rise in the number of new COVID-19 cases worldwide and inflation put pressure on yields.
Average weekly rates on new mortgage loans by 15th July cited Freddie Mac be:
According to Freddie Mac,
The summer mortgage rate drop continues as 30-year fixed rates fell 3%.rd week in a row.
After a peak of 3.18% in April, rates fell 30 basis points.
While the downturn is small, it brings moderate relief to borrowers who buy in a market with high home valuations and scarce inventories.
Rates of the Mortgage Bankers Association
A week before 9th July tariffs we:
Average interest rates on 30-year fixed balances fell from 3.15% to 3.09%. Points decreased from 0.38 to 0.37 (including processing fees) for LTV loans of 80%.
Average 30-year fixed mortgage rates supported by the FHA fell from 3.17% to 3.15%. Points dropped from 0.32 to 0.29 (including creation fee) for loans with LTV 80%.
Average 30-year interest rates on large loan balances decreased from 3.20% to 3.16%. Points decreased from 0.28 to 0.27 (including creation fee) for 80% LTV loans.
Weekly data released by the Association of Mortgage Banks showed that the Market Composite Index, which measures the volume of applications for mortgages, jumped 16.0% in the week ended 9.th July. A week earlier, the index fell 1.8%.
The refinancing index rose 20% and was 29% lower than in the same week a year ago. The index fell 2% last week.
Week Ending 9th In July, the share of refinancing mortgage activities increased from 61.6% to 64.1%. The share fell from 61.9% to 61.6% in the previous week.
According to the MBA,
In the past week, the total number of applications rose, mainly due to refinancing, as rates fell again.
Treasury yields have declined over the past month as investors remain worried about the COVID-19 option and slowing economic growth.
Falling mortgage rates for 2 years.nd For a week in a row, 30-year fixed rates remained at their lowest level since February 2021.
Although the number of purchase applications increased in the past week, loan sizes have dropped to their lowest level since January 2021.
A week ahead
This is a particularly quiet first half of the week. Economic data is limited to statistics on the housing sector, which should not have much of an impact on profitability.
The lack of statistics will leave COVID-19 news updates and chatter from Capitol Hill to ensure earnings earlier in the week.
This article was originally listed on FX Empire