By Crissinda Ponder • Bankrate.com
Mortgage rates fell this week as the economic turmoil in Greece continued wreaking havoc on international markets. The lower rates have been persuading consumers to jump on the homebuying bandwagon.
Greek citizens voted July 5 on whether to accept the tough repayment terms for additional emergency aid offered by the country’s creditors, also known as the “troika:” the European Central Bank, European Commission and the International Monetary Fund. Greece rejected the bailout proposal, leaving the country with an uncertain financial future.
Government bonds are all the rage these days due to the ongoing Greek debt crisis. The U.S. 10-year Treasury bond yield fell to a one-month low this week, according to The Wall Street Journal.
Mortgage rates “nearly always” follow the same pattern as the 10-year Treasury yield, says Lawrence Yun, chief economist and vice president of research for the National Association of Realtors. Rates are forecast to rise significantly by year’s end, but they’re taking a break from their climb for now.
“If there’s a one-week respite in this general upward trend, it should be good news” for those who are serious about buying a home, he adds.
The benchmark 30-year fixed-rate mortgage fell to 4.14% from 4.19%, according to the Bankrate.com July 8 survey of large lenders. A year ago, it was 4.31%. Four weeks ago, the rate was 4.15%.
The mortgages in this week’s survey had an average total of 0.25 discount and origination points. Over the past 52 weeks, the 30-year fixed has averaged 4.05%. This week’s rate is 0.09 percentage points higher than the 52-week average.
The benchmark 15-year fixed-rate mortgage fell to 3.28% from 3.34%.
The benchmark 30-year fixed-rate jumbo mortgage fell to 4.07% from 4.18%.
The benchmark 5/1 adjustable-rate mortgage fell to 3.16% from 3.25%.
