By Crissinda Ponder • Bankrate.com
Interest rates on mortgages moved slightly lower this week as worrisome economic data from the United States and China startled markets.
U.S. retail sales inched up only 0.1% from August to September, according to the Census Bureau. Meanwhile, in China, imports dropped 20% year over year last month, Reuters reports.
There were 36,000 foreclosures completed during August 2015, according to a CoreLogic report released Tuesday. Completed foreclosures fell 20.1% from August 2014. The real estate data firm also reported that the number of seriously delinquent mortgages — those at least 90 days past due — fell 20.7% from August 2014 to August 2015.
Investors have been retreating to government bonds because of global market concerns, which has pushed bond prices up and yields down. The 10-year Treasury yield was hovering just below 2% Wednesday afternoon. Mortgage rates typically follow the direction of Treasury yields.
“It’s an attractive environment for a consumer to be able to get long-term financing for homes,” says Bryan Sullivan, chief investment and strategy officer for loanDepot in Foothill Ranch, California.
- The benchmark 30-year fixed-rate mortgage fell to 3.93% from 3.95%, according to Bankrate’s Oct. 14 survey of large lenders. A year ago, it was 4.01%. Four weeks ago, the rate was 4.06%. The mortgages in this week’s survey had an average total of 0.2 discount and origination points. Over the past 52 weeks, the 30-year fixed rate has averaged 3.99%. This week’s rate is 0.06 percentage points lower than the 52-week average.
- The benchmark 15-year fixed-rate mortgage fell to 3.14% from 3.15%.
- The benchmark 30-year fixed-rate jumbo mortgage fell to 3.88% from 3.9%.
- The benchmark 5/1 adjustable-rate mortgage rose to 3.18% from 3.17%.
