Washington - According to the latest data released Thursday by Freddie
Mac, the 30-year fixed-rate average tumbled to 3.97 percent with an average 0.5
point. It was 4.08 percent a week ago and 3.59 percent a year ago. The 30-year
fixed rate hasn't dipped below 4 percent since November.
The 15-year fixed rate average dropped to 3.23 percent with
an average 0.5 point. It was 3.34 percent a week ago and 2.85 percent a year
ago. The five-year adjustable rate average fell to 3.1 percent with an average
0.4 point. It was 3.18 percent a week ago and 2.81 percent a year ago.
"Weak economic data and growing international tensions
are driving investors out of riskier sectors and into Treasury
securities," Sean Becketti, Freddie Mac chief economist, said in a
statement. "This shift in investment sentiment has propelled rates
lower."
Because of uncertainty surrounding the French elections and
tensions in North Korea,
investors are scooping up bonds. That's driving yields lower. The yield on a
10-year Treasury sank to its lowest point since November on Tuesday, dropping
to 2.18 percent. Because home loan rates tend to follow the same path as
long-term bond yields, they also fell.
Bankrate.com, which puts out a weekly mortgage rate trend
index, found that the experts it surveyed were almost evenly divided on where
rates are headed in the coming week. Thirty-eight percent said they would fall,
38 percent said they would hold steady and 24 percent said they would rise.
Michael Becker, branch manager at Sierra Pacific Mortgage, is one who predicts
rates will remain relatively unchanged.
"To the surprise of many, the dip in mortgage rates
continued this week," Becker said. "Mortgage rates are now at the
lowest levels for 2017. The question is will this rally continue, or will rates
quickly revert to the higher levels of just a few weeks ago.
Looking forward, it's hard to see rates dropping further in
the coming week. But if first quarter GDP disappoints next Friday, this drop in
rates could have further to go."
Meanwhile, despite the drop in rates, mortgage applications
were down last week, according to the latest data from the Mortgage Bankers
Association.
The market composite index a measure of total loan
application volume decreased 1.8 percent. The refinance index was essentially
unchanged, slipping 0.2 percent. The purchase index fell 3 percent.
The refinance share of mortgage activity accounted for 42.4
percent of all applications.
WASHINGTON POST