US mortgage rates rise above 3% for the first time since late June

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Mortgage rates only jumped for the 2nd above the 3% marknd Time since 21NS April.

In the week up to 30NS In September, the 30-year fixed interest rate rose 13 basis points to 3.01%.

30-year mortgage rates have risen above the 3% mark only once.NS April when rates hit 3.02% on the 23rdapprox June.

Compared to this point in the previous year, the 30-year fixed interest rate rose by 13 basis points.

30-year fixed rates are still down 193 basis points since hitting their last high of 4.94% in November 2018.

Economic data of the week

On the US economic data front, the week got off to a relatively calm start. Key statistics included orders for durable and core durable goods and consumer confidence figures.

Statistics were negative as core durable goods orders fell short of expectations and consumer confidence fell.

In August, core durable goods orders rose just 0.2% versus a projected 0.5% increase. Core durable goods orders were up 0.8% in July.

In September, the CB Consumer Confidence Index fell from 115.2 to 109.3. Economists had forecast a more modest drop to 114.5.

In the residential real estate sector, the upturn in house prices has accelerated further. The S & P / CS HSI Composite – 20 nsa was 19.9% ​​up on the previous year in July. In June the index was up 19.1%.

Despite rising prices, pending home sales rose 8.1% in August, reversing a 2.0% decline from July.

Freddie Mac Awards

The weekly average rate for new mortgages as of April 30NS September were quoted by Freddie Mac to be:

According to Freddie Mac,

  • Mortgage rates rose on all types of loans as 10-year US Treasury yields hit their highest level since June.

  • The rise in 10-year returns was attributed to the FED notice on tapering, the expansion of inflation, and emerging energy constraints that exacerbate other labor and material shortages.

  • Freddie Mac expects interest rates to continue to rise slightly, which is likely to affect home prices, so they will weaken slightly after the surge last year.

Advice from the Mortgage Bankers Association

For the week until 24NS September the Prices became:

  • The average interest rates for 30-year fixed bonds with corresponding loan balances rose from 3.03% to 3.10%. Point increase from 0.30 to 0.34 (including issuing fee) for 80% LTV loans.

  • The average 30-year FHA-secured fixed rate mortgage rose from 3.07% to 3.09%. The points remained unchanged at 0.25 (including issuing fee) for 80% LTV loans.

  • The 30-year average jumbo credit balance increased from 3.11% to 3.14%. Point increase from 0.25 to 0.33 (including issuing fee) for 80% LTV loans.

The weekly numbers released by the Mortgage Bankers Association showed that the Market Composite Index, which is a measure of the size of mortgage loans, was up for the week ending May 24thNS September. In the previous week the index was up 4.9%.

The refinancing index lost 1.0% and was 0.4% higher than in the same week a year ago. The index was up 7% the week before.

In the week up to 24NS In September, the refinancing share of mortgage activities rose from 66.2% to 66.4% of total applications. The share had risen in the previous week from 64.9% to 66.2%.

According to the MBA,

  • Heightened optimism about the strength of the economy pushed government bond yields higher after last week’s FOMC meeting.

  • Mortgage rates rose over all loan periods.

  • The increase in rates led to a decrease in both purchase and refinancing requests.

  • With home price appreciation still hot, up more than 19% annually in July, higher loan applications continue to outperform lower balance loans.

  • The average application loan size reached $ 410,000, its highest level since May 2021.

For the coming week

It’s a relatively busy first half of the week in the US economic calendar.

Factory orders, ISM non-manufacturing PMI, and ADP non-farm employment change numbers will affect earnings at the start of the week.

After inflation and personal spending, bullish numbers will give the FOMC hawks more ammunition to force a move. Such a scenario would drive yields north and mortgage rates higher.

this items was originally published on FX Empire

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