By Crissinda Ponder • Bankrate.com
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.
Treasury yields have been sinking this week. The yield on the 10-year Treasury note fell from 2.17% the morning of Sept. 25 to about 2.06% Wednesday afternoon. Investors flock to government bonds when global economic concerns intensify, which drives up bond prices. Yields fall as a result.
The 10-year yield, which influences mortgage rates, has been creeping closer and closer to 2%. This is likely good news for borrowers, says Brett Sinnott, vice president of capital markets for CMG Financial in San Ramon, California.
“We’ve seen an eighth to a quarter percent improvement in rates depending on program and situation,” he says.
The benchmark 30-year fixed-rate mortgage inched up to 4.01% from 4%, according to Bankrate’s Sept. 30 survey of large lenders. A year ago, the rate was 4.27%. Four weeks ago, it was 4.05%. The mortgages in this week’s survey had an average total of 0.21 discount and origination points. Over the past 52 weeks, the 30-year fixed rate has averaged 4%. This week’s rate is 0.01 percentage points higher than the 52-week average.
The benchmark 15-year fixed-rate mortgage stayed at 3.18%.
The benchmark 30-year fixed-rate jumbo mortgage fell to 3.87% from 3.89%.
The benchmark 5/1 adjustable-rate mortgage was unchanged at 3.19%.
