Did Mortgage Rates Drop todayMortgage rates fell today?
This was the 6th consecutive weeks of casualties.
Volumes were 10 per cent lower than in the same weeks a year ago. The refinancing volumes, which are the most vulnerable and usually increase when interest rates drop, did exactly the opposite. Refinancing requests for a home loans dropped 5 per cent a week down to its low since December 2000. Volumes were almost 27 per cent lower than a year ago, when prices were still lower.
Refinancing as a percentage of overall financing volumes dropped to its low of only 35.3 per cent since August 2008. It is unlikely that the decline in interest rates on a one-week basis was sufficient to persuade the borrower to initiate the often lengthy refinancing procedure. Mean interest rates on 30-year term mortgage contracts with compliant credit balance (USD 453,100 or less) declined to 4.84 per cent from 4.86 per cent, with points falling from 0.52 (including commitment fee) to 0.47 for 80 per cent Loan-to-Value Relationship (LTV) lending.
"Interest rates fell slightly during the course of the weeks as worries about US trading policies and overall expansion sent some traders back into more secure US treasuries. Proceedings at the last session of the ROMC also adopted a more peaceful note, adding to the downside pressures on interest rates," said Joel Kan, associated vice-president of the Mortgage Bankers Association's economics and industries forecast.
Mortgages to buy a house dropped 2 per cent for the week, but were 2 per cent higher than a year ago. House buyers today are less anxious about interest rates and more interested in low supplies and high selling rates. Mortgages rates were lower earlier this week as a selloff on the exchange led to a run on bond issues.
10-year yields on US Treasuries, followed by mortgage rates, dropped to their lows since early April. Also mortgage rates dropped, but the Trajectory still seems to be higher. "Matthew Graham, Mortgage News Daily's C. O. O., said the things that caused the bullish interest rate pressures have not moved.
"It is a big "if" to have the chance that an EU withdrawal from Italy could shade all the backwinds for interest rates, even though it is big in short run dramas."