Mortgage rates made a second straight weekly increase, and quite a significant one at that, in the latest Freddie Mac weekly mortgage interest rate survey.
Mortgage rates made a second straight weekly increase, and quite a significant one at that, in the latest Freddie Mac weekly mortgage interest rate survey. Despite the increase, though, rates remained fairly close to historically low averages.
According to Freddie Mac, the average rate on 30-year fixed-rate mortgages zoomed up 19 basis points from 4.16 percent to 4.35 percent as of Thursday. This marks the highest level on record since the week ended September 19, when 30-year fixed mortgages averaged 4.50 percent. Also moving up, though not as much as 30-year fixed mortgage rates did, the rates on 15-year fixed home loans, which climbed eight basis points from 3.27 percent to 3.35 percent. Interest rates remained at their lowest levels in general in a four-month timeframe.
Some of the variables that pushed rates upwards this week were a very encouraging employment report for October, where it was revealed that U.S. employers created 204,000 jobs despite the government stalemate lasting more than half the month, as well as a separate report from the government showing that company stockpiles led to a pleasantly surprising growth from the July 2013 quarter to the September 2013 frame.
Prior to the release of these reports, mortgage interest rates were steadily declining, following the Federal Reserve’s announcement that it will, for the meantime, push forward with its $85 billion a month economic stimulus.
Going forward, it is not expected that the Fed would curtail its bond purchases anytime soon. In particular, several analysts forecasted that Fed Vice Chair Janet L. Yellen’s comments from yesterday point to the Fed not budging on its stand at its December policy meeting. Be that as it may, economic experts now believe the Fed may only “taper” its stimulus after March, when most believe the tapering would start.
Yellen had informed the Senate Banking Committee yesterday that she would still require financial support from the Fed due to the U.S. unemployment rate still being high at 7.3 percent.
Now, let’s take a look at current refinance rates at some of the top U.S. lenders.
Rates on long-term refinance loans haven’t changed at Citi Mortgage (NYSE:C) on Friday, according to the lender’s published data. The 30-year fixed refinance loan is still advertised at a rate of 4.375% at this bank. In case of the shorter-term, but also popular 15-year fixed counterpart, the starting rate hovers at 3.375%.
Moving on to another top U.S. mortgage provider, Branch Banking and Trust (NYSE:BBT), the benchmark 30-year fixed mortgage has a daily low at 4.375%, the same rate level that it held a day earlier. However, the shorter, 20-year FRM now looks more attractive, as the starting rate improved to 4.125% at the North Carolina-based lender. With regards to the 15-year fixed refinance loan, it’s still offered at 3.375%. The rate on the 10-year fixed rate mortgage was lowered to 3.125%, according to our observations.
At PNC Bank (NYSE:PNC), the 30-year fixed mortgage is quoted this Friday at a rate of 4.500% – 4.750%, The 20-year fixed alternative is now carrying a lower interest rate in the form of 4.125% – 4.500%. No changes were made to the 15-year FRM, which still stands at 3.375% – 3.750%. The lender’s rate data also revealed that the short-term, 10-year refinance loan is coming out at 3.125% – 3.625%.
The mortgage rate quotes given are liable to change without notice and can vary when the loan is approved or the funds are disbursed. For futher information on the lenders’ current refinance mortgage rates, please take a visit to their websites or contact the loan officers in charge.