Might make sense to contact those borrowers who were on the fence about buying/refiing and waking them up, said Brent Nyitray, CFA, Dellacamera Capital Management/National Asset Direct/iServe Residential Lending, in an email Thursday, alerting originators to a decline in the benchmark 10-year Treasury yield at one point below 2.6%. Anyone that is floating right now should be contacted.
Near noon on the East Coast Thursday the 10-year yield was slightly above 2.6% but still far below its high near 2.74% earlier this week, according to Yahoo Finance.
The downward move in rate-indicative yields follows a resolution of the federal budget impasse. Prior to the impasses end, rates were relatively higher compared to the previous week.
The weekly average for the Freddie Mac 30-year rate was 4.28%, 15-year fixed rates for the week ending Oct. 17 were up two basis points at 3.33%, and the average rate for five-year Treasury-indexed hybrids was up by two basis points at 3.07%.
In contrast, the average weekly rate for one-year Treasury adjustable-rate mortgages was down by a basis point at 2.63% in Freddie Macs survey.
Average points during the past week were lowest for one-year Treasury ARMs and five-year Treasury hybrids at 0.4 of a point. Fixed-rate products averaged 0.7 of a point.
A year ago a 30-year FRM averaged 3.37% and a 15-year FRM averaged 2.66%, while a five-year Treasury hybrid averaged 2.75% and a one-year Treasury ARM averaged 2.6%.