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After the previous week’s big jump, mortgage rates dragged back slightly. However, that dip is anticipated to be short-lived.
In accordance with the newest data released Thursday by Freddie Mac, there was a fall in the 30-year fixed-rate average below 3 percent, falling to 2.99 percent with an average of 0.7 points.
(Points are Lender fees paid to them equal to 1 percent of the loan amount. They are in accumulation to the interest rate.)
It was 3.01 percent a week before and 2.87 percent a year ago.
The federally chartered mortgage investor, Freddie Mac, combines rates from around 80 lenders across the country to come up with weekly national averages.
The survey is based on home purchase mortgages. Rates for refinances may possibly be different.
It uses rates for high-quality borrowers with good credit scores and large down payments. Because of the criteria, these rates are not obtainable to every borrower.
The fixed-rate average for 15-year fell to 2.23 percent with an average of 0.7 points. It was 2.28 percent a week before and 2.37 percent a year ago.
There was a rise in the five-year adjustable-rate average by 2.52 percent with an average of 0.3 points. It was 2.48 percent a week before and 2.89 percent a year ago.
Mortgage rates are directed by several factors, but the movement of the 10-year Treasury bond yield tends to be one of the greatest indicators of where rates are headed.
After declining to 1.48 percent to start the month, the yield on the 10-year Treasury jumped back to 1.53 percent on Wednesday.
Yields on long-term bonds were stuck in a rigid range for most of September but began rising late in the month.
Many experts anticipate they will keep moving higher.
Ken H. Johnson, a real estate economist at Florida Atlantic University said “Ten-year Treasury note yields go on to rise as a result of sobering economic news lowering growth outlook, debt-limit brinksmanship among the Republicans and Democrats, questions about the supply chains of approximately everything and inflation, China’s issues with real estate.”
“The increase in the 10-year Treasury yields will result in upward demand on mortgage rates.”
Bankrate.com, which publishes a weekly mortgage rate trend index, found more than half of the experts it surveyed say rates will rise in the coming week.
Reference Source: The Washington Post
