The rate on the most popular mortgage finally backed down after four straight weeks of increases, persuading some people to borrow. But rates are still about an eighth of a percentage point higher than a month ago, when many consumers committed to buying new houses.
Rates reversed their gains from the past several weeks after investors dumped government bonds worldwide. That global sell-off sent the yield on the 10-year Treasury — which mortgage rates tend to track — higher.
“(Mortgage rates) are better than they have been. We saw them bump up before the holidays,” says Pava Leyrer, chief operating officer at Northern Mortgage Services in Grand Rapids, Michigan. “Now, they are improving.”
- The benchmark 30-year fixed-rate mortgage fell to 4 percent from 4.03 percent last week, according to the Bankrate.com national survey of large lenders. One year ago, that rate was 4.26 percent. Four weeks ago, it was 3.86 percent. The mortgages in this week’s survey had an average total of 0.23 discount and origination points. Over the past 52 weeks, the 30-year fixed has averaged 4.07 percent. This week’s rate is 0.07 percentage points lower than that 52-week average.
- The benchmark 15-year fixed-rate mortgage fell to 3.22 percent from 3.23 percent.
- The benchmark 5/1 adjustable-rate mortgage fell to 3.17 percent from 3.19 percent.
- The benchmark 30-year fixed-rate jumbo fell to 4.07 percent from 4.13 percent.
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