Mortgage rates stay below 4 percent for 10th consecutive week

Mortgage rates were little changed amid ongoing uncertainty about the health of the global economy and mixed messages from the Federal Reserve.

Mortgage rates were unchanged this week as stock market volatility continued and new data revealed that the growth in home prices seems to be sticking around.

“Variable-rate clients who touched base in the spring and vacillated are now calling back with instructions”, said Sojonky, an adviser with Verico Paragon Mortgage Group in West Vancouver, B.C.

Treasury yields have been sinking this week.

A few housing experts expected the homeownership rate, which has been decreasing since 2004 to get a much-needed boost as millennials entered the housing market.

From Freddie Mac’s weekly survey: The 30-year fixed improved 1 basis point to 3.85 percent from last week’s 3.86 percent. A year ago at this time, the 30-year FRM averaged 4.19 percent.

The benchmark 15-year fixed-rate mortgage stayed at 3.18%. Only 2 major cities saw double-digit, year-over-year increases: San Francisco (10.4%) and Denver (10.3%).

The majority of panelists – 56 percent – expect mortgage rates to remain more or less unchanged over the next week, and 22 percent forecast mortgage rates will decline. The mortgages in this week’s survey had an average total of 0.21 discount and origination points. The short term 15 year refi fixed rate mortgage interest rates are on the books at 2.75% and an April of 3.239%. A year ago, the five-year ARM averaged 3.06%. ARMs in the 7 year refi category can be had for 2.625% and an April of 3.141%.

The 30-year-fixed rate averaged 3.85 percent through Wednesday, down one basis point.

That compares with three months’ interest on the remaining balance for a variable-rate mortgage, which Scott says is generally less than the fixed-rate penalty.