Average US 30-year mortgage rate slips to 4.14 percent
- Author: Zachary Reyes Mar 31, 2017,
Mar 31, 2017, 8:10
Mortgage rates were only slightly changed this week, with the benchmark 30-year fixed mortgage rate inching higher to 4.30 percent, according to Bankrate.com's weekly national survey.
The borrowing cost on 30-year mortgages, the most widely held type of USA home loan, averaged 4.14 percent in the week ended March 30, which was the lowest since 4.10 percent in the March 2 week.
The 15-year fixed-rate average dropped to 3.39 percent with an average 0.4 point. The average rates on 30-year fixed and 15-year fixed mortgages held steady.
Because mortgage rates tend to follow the movement of long-term bonds, home loan rates also dropped.
The Mortgage Bankers Association reported less than a one percent decrease in loan application volume from the previous week. It was 3.24 percent a week ago and 2.90 percent a year ago. The majority of panelists, 64 percent, expect mortgage rates to remain more or less unchanged in the coming week. "Pricing for rates will stay in the same range until something on the macroeconomic side or headline side gets us over or under this channel in yields for the 10-year [Treasury]".
"Recent indications of stronger growth convinced the Federal Reserve to raise the federal funds rate this month and to signal further increases later this year", Freddie Mac Chief Economist Sean Becketti said. But despite the fluctuations in rates, new home sales still managed to exceed expectations jumping 6.1 percent in February to 592,000.
"Since January 2000, home prices have risen a bit faster than incomes, though recently home price growth has outpaced income growth by a wider margin", the report stated.
After weeks of volatility, home loan rates are generally where they ended the month of February, according to the NerdWallet Mortgage Rate Index. The refinance index fell 3 percent, while the purchase index increased 1 percent. The refinance share of mortgage activity dropped to 44 percent of total applications, marking the lowest level of refinance activity since October 2008.