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Mortgage rates were on the rise for just the 2nd week in the last 8. In the week ending 3rd July, 30-year fixed rates rose by 2 basis points to 3.75%, partially reversing an 11 basis point fall from the previous week. That left 30-year rates close the lowest level since late 2016 according to figures released by Freddie Mac.
Compared to this time last year, 30-year fixed rates were down by 77 basis points.
More significantly, 30-year fixed rates are down by 119 basis points since last November’s most recent peak of 4.94%.
Economic Data from the Week
Key stats out of the U.S through the 1st half of the week were on the heavier side.
June manufacturing sector PMI numbers provided direction at the start of the week. An upward revision to the Markit survey prelim numbers saw the PMI rise from 50.5 to 50.6 in June. For the market’s preferred ISM survey, whilst activity eased from May, the PMI also came in ahead of forecast.
With a lack of stats on Tuesday, it was then down to the all-important ADP nonfarm employment change figures and ISM non-manufacturing PMI numbers on Wednesday.
According to the ISM survey, service sector activity saw slower growth in June, with the ADP reporting 102k jobs added. Forecasts were employment to rise by 140k.
Adding to the negative sentiment towards the U.S economy was a widening in the U.S trade deficit and a 0.7% fall in factory orders.
In spite of the negatively skewed stats out of the U.S, an agreement between the U.S and China at the G20 Summit to progress on trade talks provided support.
Freddie Mac Rates
The weekly average rates for new mortgages as of 3rd July were quoted by Freddie Mac to be:
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30-year fixed rates increased by 2 basis points to 3.75% in the week. Rates were down from 4.52% from a year ago. The average fee rose from 0.5 to 0.6 points.
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15-year fixed rates rose by 2 basis point to 3.18% in the week. Rates were down from 3.99% from a year ago. The average fee held steady at 0.5 points.
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5-year fixed rates increased by 6 basis points to 3.45% in the week. Rates were down by 29 basis points from last year’s 3.74%. The average fee held steady at 0.4 points.
Labour market conditions and consumer confidence continue to support the housing market outlook near-term…
Mortgage Bankers’ Association Rates
For the week ending 28th June, rates were quoted to be:
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Average interest rates for 30-year fixed, backed by the FHA, decreased from 4.01% to 3.97%. Points decreased from 0.36 to 0.30 (incl. origination fee) for 80% LTV loans.
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Average interest rates for 30-year fixed with conforming loan balances increased from 4.06% to 4.07%. Points increased from 0.35 to 0.36 (incl. origination fee) for 80% LTV loans.
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Average 30-year rates for jumbo loan balances held steady at 4.00%. Points increased from 0.24 to 0.25 (incl. origination fee) for 80% LTV loans.