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Mortgage rates decreased in the week ending 2North Dakota Can. Fixed rates at 30 years decreased by 6 basis points, reversing the rise of 3 basis points over the previous week. According to figures released by Freddie Mac, the 6-basis-point decline took the 30-year rate to 4.14%.
After the weekly decline, 30-year fixed rates were 41 basis points lower than 12-month ago.
More importantly, the 30-year fixed rate decreased by 80 basis points from the last record high of 4.94% last November.
Economic data of the week
Economic data released in the United States during the first half of the week were rather cumbersome. Key statistics include the FED's main preferred PCE price index and personal expenditure figures released on Monday.
Moderate inflation earlier in the week had the most significant impact, despite a jump in personal spending.
The rise in consumer confidence in April also influenced changes in ADP Nonfarm Employment and ISM manufacturing PMI figures released Wednesday.
Higher than expected US GDP figures, which triggered alarms about consumption and investment, also influenced the start of the week.
Outside the United States, China's private sector PMI figures have disappointed.
On the monetary policy front, the Fed has taken the idea that it would not be necessary to reduce rates later in the year. Fed Chairman Powell said the current moderating inflationary environment was a transitional period, suggesting that a wait could be more likely by the end of the year. ;year.
Despite solid numbers and a more hawkish FED than expected, worries about the global economy continued to dampen US Treasury yields, resulting in a drop in mortgage rates this week.
Freddie Mac Rates
Weekly average rates for new mortgages from 2North Dakota May have been cited by Freddie Mac be:
- Fixed rates at age 30 dropped by 6 basis points to 4.14% on weekdays. Rates were down 4.55% from last year. The average tax remained stable at 0.5 points.
- Fixed rates at age 15 declined 4 basis points to 3.60% on weekdays. Rates were down 4.03% from last year. The average fee went from 0.5 to 0.4 points.
- Fixed rates over 5 years fell 9 basis points to stand at 3.68% on weekdays. Rates fell 1 basis points from 3.69% last year. The average tax remained stable at 0.4 points.
According to Freddie Mac, lower inflation and weaker economic data led to lower mortgage rates this week. Freddie Mac also noted that a combination of low rates, strong economic growth, lower inflation and a boost in consumer confidence should generate sustained demand in the markets. coming months.
Mortgage Bankers Association Rates
For the week ending the 26thth April, rates have been cited to be:
- The average interest rates for the fixed 30-year loans, guaranteed by the FHA, decreased from 4.49% to 4.39%. The number of points increased from 0.57 to 0.47 (including origination fees) for 80% of LTV loans.
- Average interest rates for fixed and compliant 30-year loans decreased from 4.46% to 4.42%. The number of points increased from 0.44 to 0.46 (including origination fees) for 80% of weighted loans.
- The average 30-year jumbo loan balances rose from 4.35% to 4.31%. The number of points increased from 0.25 to 0.23 (including origination fees) for 80% of loans on a loan-to-value ratio.
Weekly figures released by the Mortgage Bankers Association showed that the composite market index, which measures the volume of mortgage applications, declined 4.3% in the week ending 26th April. The decline came as a result of a 7.3% drop in the week endingth April.
The refinancing index decreased by 5% during the week ending 26th April. Slip was caused by a 11% drop during the week ending 19th April.
The proportion of mortgages with refinancing rose from 39.4% to 38.8%, after falling from 41.5% to 39.4% the previous week.
According to the MBA, 30-year fixed rates are declining, worries about global growth, especially in Germany, offsetting better-than-expected US economic data. from there a year ago.
For the week ahead
It's a quieter week on the economic data front. Key statistics due to the US are limited to JOLT's job offers, scheduled for publication on Tuesday.
While the statistics for the first half of the week are clearer, payroll and nonfarm wage growth figures released in April, released last Friday, will have an impact on the fact that the week will begin.
Weaker-than-expected wage growth could limit any potential rise in US Treasury yields earlier this week.
Moreover, April trade data for China should be the main risk factor. The numbers are low and mortgage rates are expected to suffer another shock in the coming week.
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