A combination of high supply and a difficult finance market has resulted in 30-year mortgage rates taking a pretty steep nose dive through 2017. In fact, home loans have just hit their lowest point of the year, so far, as inflation remains at a stagnant low on the concern of a potential government shutdown.
The 30-year fixed rate mortgage has had an average of about 3.86 percent in the past week. That is down three base points, making a nine-month low. Fortunately, the 15-year fixed-rate mortgage has had an average of 3.16 percent, which has not changed this week. Perhaps even more important: the 5-year Treasury-Indexed adjustable-rate mortgage average 3.17 percent, which is up a single base point; this metric is higher, of course, than the 2.75 percent it hit the same week last year.
The 15-year fixed-rate average remained the same as it was a week ago, holding steady at 3.16 percent with an average 0.5 point. It was 2.74 percent a year ago. The five-year adjustable rate average edged up to 3.17 percent with an average 0.5 point. It was 3.16 percent a week ago and 2.75 percent a year ago.
Bankrate.com publishes a mortgage rate trend index every week and this week, the site has found that more than half of the experts in their survey comment that rates will stay pretty stable over the next week or so. In fact, Arcus Lendnig Shashank Shekhar is among those who support this trend.
He says, “Rates have remained mostly the same during the month of August and not much should change in the coming week. The net effect of various economic news on one side and threat of a government shutdown and termination of NAFTA by the president on the other side will be not much. Other than small intra-day changes, consumers can expect a stable interest rate this week.”
At the same time, though, it is important to note that the Mortgage Bankers Association report mortgage applications were flat last week, again. Accordingly, the market composite index—this is the measure of total loan application volume in the market—slid down by 0.5 percent. The refinance index, on the other hand, bumped up by just 0.3 percent and the the purchase index fell by a more substantial 3 percent.
In addition, you must remember that the refinance share of all mortgage activity accounts for nearly 49 percent of all mortgage applications.