Mortgage Rates Fall a Bit, Lenders Busy

The average rate for a 30-year fixed rate mortgage fell four basis points during the week ending September 6 to 3.55%, according to new figures compiled by Freddie Mac.

Long-term rate-indicative bond yields had trended downward during the week but then jumped a bit Thursday morning. The benchmark 10-year Treasury yielded 1.66% at deadline. It had fallen below 1.6% Wednesday, but remains lower that its recent peak near 1.8% in August.

Meanwhile, although applications have been lower the past few weeks–according to the Mortgage Bankers Association–many residential funders continue to report strong pipelines. Soon-to-be released figures from National Mortgage News and the Quarterly Data Report show that 2Q fundings were the strongest of the year.  

Although the 30-year mortgage rate dropped a bit in Freddie’s survey, the average 15-year FRM remained the same as the previous week: 2.86%. The average rate for a five-year Treasury-indexed hybrid ARM slid three basis points to 2.75%. The rate for a one-year Treasury ARM inched down two basis points to 2.61%.

Frank Nothaft, Freddie Mac’s vice president and chief economist, attributed the rate moves to mixed economic releases during the week, which included the Labor Day holiday.

Average points during that week remained lowest for one-year Treasury ARMs at 0.4 of a point, followed by 15-year FRMs at 0.6 of a point.

A year ago, the 30-year FRM averaged 4.12%.

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