Mortgage rates fall again ☘ edge closer to 4% ☘ Hoey Team ☘ eXp

Dated: 05/21/2019

Views: 0

WASHINGTON (AP) – May 16, 2019 – U.S. long-term mortgage rates fell slightly this week, marking a third straight week of declines as a continued inducement to purchasers in the spring homebuying season.

Mortgage buyer Freddie Mac said Thursday the average rate on the 30-year, fixed-rate mortgage eased to 4.07% from 4.10% last week. By contrast, a year ago the benchmark rate stood at 4.61%.

The average rate for 15-year, fixed-rate home loans declined this week to 3.53% from 3.57% last week.

The continuing U.S.-China trade war kicked into a fevered battle this week as high-level talks between the two sides broke down Friday and the Trump administration slapped new tariffs on $200 billion in Chinese imports. Beijing retaliated on Monday with increased tariffs on $60 billion of U.S. products. That sent stock prices tumbling around the globe; the Dow Jones Industrial Average plunged more than 600 points as nervous investors shifted money from volatile stocks to the bond market.

Bond yields fall as prices rise. The yield on the 10-year Treasury note, which influences mortgage rates, was 2.37% late Wednesday, down sharply from 2.48% a week earlier. It rose to 2.41% Thursday morning.

With mortgage rates at historically low levels and positive economic signs, Freddie Mac is expecting home sales to increase this summer.

"While signals from the financial markets are flashing caution signs, the real economy remains on solid ground with steady job growth and five-decade low unemployment rates," Freddie Mac Chief Economist Sam Khater said.

Freddie Mac surveys lenders across the country between Monday and Wednesday each week to compile its mortgage rate figures.

The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates.

The average fee on 30-year fixed-rate mortgages was unchanged this week at 0.5 point.

The average fee for the 15-year mortgage held at 0.4 point.

The average rate for five-year adjustable-rate mortgages rose to 3.66% from 3.63% last week. The fee remained at 0.4 point.

From Florida Realtors - May 2019

Blog author image

Barry and Kim with the Hoey Team

"Your Real Estate Concierge" If you are looking for a REALTOR® who will fully communicate; promptly, professionally, and in detail with you, to help you with all your Real Estate needs, then look no....

Latest Blog Posts

Mortgage rates fall again ☘ edge closer to 4% ☘ Hoey Team ☘ eXp

WASHINGTON (AP) – May 16, 2019 – U.S. long-term mortgage rates fell slightly this week, marking a third straight week of declines as a continued inducement to purchasers in the spring

Read More

High-Priority Tax Initiatives Likely to Stall in Congress ☘ Hoey Team ☘ eXp Realty

Political divisiveness on Capitol Hill likely will prevent Congress from passing legislation this year addressing important tax initiatives that affect real estate, including the state and local(

Read More

U.S. News & World Report: Fla. No. 1 for higher education ☘ Hoey Team ☘ eXp

TALLAHASSEE, Fla. – May 14, 2019 – U.S. News & World Report named Florida the top state in the country for higher education for the third year in a row. The analysis considered the

Read More

Program to boost credit scores requires bank account access ☘ Hoey Team ☘ eXp

NEW YORK – May 15, 2019 – Actor and activist Hill Harper, no stranger to offering advice on building financial security, is about to embark on a new venture with Experian to help

Read More