Average US 30-year mortgage rate slips to 4.02 percent
- Author: Zachary Reyes May 19, 2017,
May 19, 2017, 8:28
The benchmark 30 year fixed rate loans are on the books at 3.875% at BMO Harris Bank yielding an April of 4.036% today.
Freddie Mac's Chief Economist Sean Becketti said that the survey came too late to see the impact from Wednesday's decline in Treasury yields.
USA markets have been in turmoil this week over concerns about President Donald Trump's economic agenda. The Mortgage Bankers Association's weekly tally was almost 16 percent lower than the same week one year ago. Adjustable mortgage rates were on the decline as well, with the 5-year ARM sinking to 3.42 percent and the 7-year ARM reverting to where it had been two weeks ago at 3.62 percent. Other key rates also fell marginally. "However, this week's survey closed prior to Wednesday's flight to quality".
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. Mortgage interest rates have been moving in a narrow field since their initial spike following the presidential election. One point equals 1 percent of the loan amount.
The best 30 year loan interest rates at Chase Bank (NYSE:JPM) are available starting at 3.750% and April of 3.915% today.
Meanwhile, mortgage applications dwindled last week, according to the latest data from the Mortgage Bankers Association.
ARM loans in the 3 year category are being quoted at 2.750% now with a starting April of 3.853%. The best 30 year jumbo loans are 4.400% with an April of 4.4678%.
The refinance share of mortgage activity accounted for 41.1 percent of all applications, its lowest level since September 2008. The faster growth for conventional loans, which tend to be larger, led to another record high for the average purchase loan size at $322 thousand.