US mortgage rates fell to less than 3%

0
17


Mortgage rates dropped by 6th every 10 weeks in the week ending 1st July

Partially offsetting 9 basis points gain from the previous week, 30-year fixed rates fell 4 basis points to 2.98%.

From 21st Rates on 30-year mortgages for April only once exceeded the 3% mark before declining. The individual visit was last week.

Compared to last year, 30-year fixed rates are down 9 basis points.

30-year fixed rates are still down 196 basis points from the last peak in November 2018 of 4.94%.

Economic data for the week

In the US economic calendar, the first half of the week was calm.

Key statistics were consumer confidence, nonfarm employment change from ADP, and manufacturing PMI from ISM.

During the week, statistics were skewed in a positive direction, with consumer confidence reaching a 16-month high in June.

ADP’s non-farm employment change is also impressive, with ADP reporting a 692,000 increase in non-farm jobs.

For the markets, the only negative moment was a slight decline in the manufacturing PMI from ISM from 61.2 to 60.6.

While the statistics were skewed in a positive direction, market worries about inflation eased during the week, supporting the downward trend in mortgage interest rates.

Freddie McRates

Average weekly rates on new mortgages for 1 year.st July cited Freddie Mac be:

According to Freddie Mac,

  • Economic growth remains stable and supports more and more segments of the economy.

  • While low and stable mortgage rates have supported the housing market boom in recent months, deteriorating availability and stocks for sale have slowed market growth.

Rates of the Mortgage Bankers Association

A week before 25th June tariffs we:

  • Average interest rates on 30-year fixed loan balances increased from 3.18% to 3.20%. Points decreased from 0.48 to 0.39 (including creation fee) for LTV credits 80%.

  • Average 30-year fixed mortgage rates supported by the FHA fell from 3.21% to 3.19%. Points remained unchanged at 0.34 (including processing fees) for loans with LTV 80%.

  • Average 30-year interest rates on large loan balances decreased from 3.26% to 3.23%. Points decreased from 0.44 to 0.33 (including creation fee) for 80% LTV loans.

Weekly data released by the Mortgage Bankers’ Association showed that the Market Composite Index, which measures the volume of applications for mortgages, fell 6.9% in the week ending 25.th June. A week earlier, the index rose 2.1%.

The refinancing index fell 8% from the previous week and was 15% lower than the same week a year ago. The index rose 3% last week.

In the week ending 25th In June, the share of refinancing mortgage activities fell from 62.5% to 61.9%. The share increased from 61.7% to 62.5% in the previous week.

According to the MBA,

  • Mortgage applications fell to their lowest level in nearly 18 months, while refinancing and purchase applications declined.

  • Rates were volatile last week as investors tried to gauge the Fed’s upcoming action amid diverging signals.

  • Rising inflation, mixed labor market data, high consumer spending and limited housing supply were key factors.

  • The average loan size for purchase requisitions increased, indicating that 1st time buyers are likely to be squeezed out of the market.

A week ahead

The first half of the week is quieter. The ISM Non-Manufacturing PMI for June will be in the spotlight on Tuesday.

JOLT job postings on Wednesday will also grab attention, as will any conversation with FOMC members throughout the week.

This article was originally listed on FX Empire

More From FXEMPIRE:



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here