US mortgage rates lowered and could fall in the coming week

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<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "The mortgage rates dropped by 2 basis points per week 2nd January. In the previous week, 30-year mortgage rates had only increased by 1 basis point to 3.74%. "Data-reactid =" 18 "> Mortgage interest rates decreased 2 basis points during the week to the end of 2nd January. In the previous week, 30-year mortgage rates had only increased by 1 basis point to 3.74%.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "With mortgage interest a week, 30- the annual rates remained at the level last reached at the beginning of November 2016 Freddie MacEmagazine.credit-suisse.com/app/art…1007 & lang = DE Since mortgage rates had dropped during the week, Freddie Mac said that 30 – year interest rates remained close to what was most recently in early November 2016 reached level.

Compared to this time in the previous year, the 30-year fixed interest rate decreased by 79 basis points.

30-year fixed interest rates have also fallen 122 basis points since their recent peak of 4.94% in November 2018.

Economic data of the week

It was a relatively busy week in terms of economic data this week. Key U.S. statistics included November trade and pending home sales, December consumer confidence and Chicago PMI numbers.

The numbers were mixed in the week. On a positive note, the Chicago Purchasing Managers' Index rose from 46.3 to 48.9 in December and the trade deficit narrowed from $ 66.53 billion to $ 63.19 billion.

The housing sector figures were also positive. Pending property sales rose 1.2% in November, while property prices rose in October.

However, a decline in consumer confidence in December had a negative impact. However, the decline was not enough to worry the markets, limiting the downward movements in US government bond yields.

Freddie Mac prices

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Average weekly rates for new mortgages from 2nd January were cited by Freddie Mac his: "data-reactid =" 28 ">Average weekly rates for new mortgages from 2nd January were cited by Freddie Mac his:

  • Fixed 30-year rates dropped 2 basis points a week to 3.72%. Interest rates fell 4.44% yoy. The average fee remained unchanged at 0.7 points.
  • Fixed 15-year rates fell 3 basis points a week to 3.16%. The rates fell by 3.99% compared to the previous year. The average remained unchanged at 0.7 points.
  • Fixed 5-year interest rates rose 1 basis point a week to 3.46%. Interest rates fell 52 basis points from 3.98% in the previous year. The average fee was stable at 0.3 points.

According to Freddie Mac, the combination of improved economic data and market sentiment stabilized mortgage rates. Interest rates have been around 3.7% in the past 8 weeks.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Volatility of mortgage rates by the 1stst Half of last year had slowed the real estate sector. "data-reactid =" 36 "> Volatility of mortgage rates by the 1stst Half of last year had weakened the housing sector.

The currently low mortgage rate environment combined with the strong labor market environment is expected to continue to support property prices and home sales.

Mortgage Banks Association sets

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "For the week up to the 20thth December, Prices were cited: "data-reactid =" 39 ">For the week up to the 20thth December, Prices were cited:

  • The average interest rates for 30-year fixed amounts secured by the FHA rose from 3.79% to 3.87%. With 80% LTV loans, the points dropped from 0.36 to 0.33 (including origination fee).
  • The average interest rate on 30-year fixed loans with corresponding credit balances rose from 3.98% to 3.99. The points for 80% LTV loans remained unchanged at 0.33 (including agency fees).
  • The average 30-year interest rate on jumbo loan balances rose from 3.96% to 3.97%. With 80% LTV loans, the points dropped from 0.26 to 0.25 (including agency fees).

<p class = "Canvas Atomic Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The weekly numbers published by the Mortgage Bankers Association have shown this The Market Composite Index, which measures the volume of mortgage loan applications, declined by 5.3% during the week to the end of the 20th monthth December. During the week until the 13thth Mortgage applications fell by 5.0% in December. "Data-reactid =" 44 "> The weekly numbers published by the Mortgage Bankers Association showed that the Market Composite Index, which is a measure of the volume of applications for mortgage loans, decreased by 5.3% in 2004 from week 20 to 20th December. During the week until the 13thth Mortgage applications fell by 5.0% in December.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The refinancing index fell 5% during the week, after a 7% decrease in the week of the 13thth December. The refinancing index rose by 128% compared to the previous week. "Data-reactid =" 45 "> The refinancing index fell 5% during the week after falling 7% during the week ending at week 13th December. The refinancing index rose 128% compared to the previous week.

The percentage of mortgage refinancing rose from 62.2% to 62.6% during the week, reversing a decline from 62.4% to 62.2% the previous week.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "While the MBA offices are closed until 2 a.m.nd January results for the past 27 weeksth December and 3rdrd January is published on 8th January."data-reactid =" 47 ">While the MBA offices are closed until 2 a.m.nd January results for the past 27 weeksth December and 3rdrd January is published on 8th January.

For the coming week

It's a relatively busy week as traders continue to come back from vacation.

Key US statistics include November trade and factory orders, as well as Tuesday's December purchasing manager indices for manufacturing.

December ADP Nonfarm Employment Change figures will also be released on Wednesday, which will have an impact.

While we can expect the numbers to point the way to US Treasuries, geopolitics will likely be the main driver.

The focus is on the Middle East, Brexit and the impeachment interview. Iran's response to Friday's events could spur demand for safe havens from the beginning of the week. Few expect Iran to lean back after the airstrike that killed its highest military commander …

Any escalation would lower mortgage rates, which would surely increase demand for refinancing applications a week. However, the uncertainty could limit the upward trend for new mortgage applications.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This items was originally published on FX Empire "data-reactid =" 55 "> This article was originally published on FX Empire

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