Mortgage rates slide; Fed opts to not raise rates at January meeting

Through Wednesday, the 30-year fixed rate averaged 3.79 percent, which was down two basis points, Freddie reported.

The average rate for a 15-year FRM was 3.28%, down from 3.29%.

The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 3.89%, down from 3.93%.

Turmoil in the stock markets continues to shake things up on Wall Street, and the ripple effects are touching the lending industry as mortgage rates dip yet again for the fourth consecutive week. Shorter term 15 year refinance FRMs start at 2.75% today with an April of 3.239%.

To the delight of borrowers, mortgage rates have improved overall since the Fed’s initial rate hike at its December meeting, says Brett Sinnott, vice president of capital markets for CMG Financial in San Ramon, California.

Mortgage rates pushed below the three-month low notched last week, mortgage provider Thursday. A year ago, the 5-year ARM averaged 2.86 percent.

Stephens said markets had shifted to price in a 50 per cent chance of an official cash rate cut in March but there was some indecision over whether it could be March or June.

According to many economists, if the yield on short-term Treasuries rises to exceed the yield on long-term bonds-the so-called “inverted yield curve”-this could indicate a lack of liquidity in credit markets and precipitate a recession”.

“This week’s confirmed the momentum of home sales going in 2016”, Becketti noted in a release.

Mortgage application volume increased for a third week straight during the week ended January 22, which included the Martin Luther King holiday, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.

The refinance share of mortgage activity decreased to 59.0 percent of total applications from 59.1 percent the previous week. The tiny bump suggests that home sales may plateau this year after a solid increase in 2015. Freddie Mac supports communities across the nation by providing mortgage capital to lenders.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.90 percent this week with an average 0.5 point, down from last week when it averaged 2.91 percent.