Wednesday, July 3, 2013

Mortgage rates dip to 4.3%

Mortgage rates fell this week as fears about the Fed relaxing its aggressive bond-buying program subsided, bringing down the yield on the 10-year treasury note and relaxing rates across the board.
The rate on the 30-year mortgage dipped to 4.29%, down from 4.46% the week before, according to mortgage buyer Freddie Mac. Last week's increase marked the biggest single-week jump in rates since 1987, pushing rates to a two-year high.
The average rate on the 15-year mortgage fell to 3.39% from 3.50%. A year ago, the rate on the 15-year mortgage was 2.89%
The decrease in rates did not give a bump to mortgage applications which continued to fall due to the previous week's spike. The Mortgage Bankers Association reported Wednesday that mortgage applications fell 11.7% from the previous week. The refinancing index decreased 16% from the previous week and hit its lowest level since July 2011.
"At these rates, many fewer home owners have an incentive to refinance, and refinance application volume declined more than 15%," said Mike Fratantoni, MBA's Vice President of Research and Economics in the company's press release.
Still, rates remain low by historical standards, and the dip in rates could re-energize the home buying market.


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