Tag Archives: Mortgage Rates

The Federal Reserve’s decision to raise rates left some wondering what would happen with mortgages. In a recent report they raise the question “Why did rates go up?” and more importantly “Why didn’t they go up more?” Industry experts weigh in.

Federal Open Market Committee is set to finish its June meeting on Wednesday and it is widely expected that they will raise interest rates in order to keep the economy stabilized, even though inflation remains around 2 percent. In May, when they last met, members of the board chose to keep interest rates at their current level. Will this mean anything for mortgage interest rates? One expert believes it might not impact the mortgage market at all.

Two weekly reports show that mortgage rates are down—the lowest they’ve been in seven months, and mortgage application volume is up. Seasonally adjusted, purchase index is on the rise while unadjusted remains down over 10 percent. 10-year treasury yield also fell this week.

Mortgage rates remained fairly steady this week, even as the Financial Open Market Committee met to discuss potential hikes in the federal funds rate. These low rates may not stay for long, however. Reports found that the rate for a 30-year fixed-rate mortgage has stayed flat, but experts noted that the Fed's "half-full" economic outlook may mean rates will rise again at some point this year.

Poor growth in the economy in the first three months of 2017, coupled Federal Open Market Committee’s March meeting minutes just released to spur a drop in mortgage rates. Thirty-year fixed mortgages and 15-year FRM both showed lower rates this week and a steady decline during the first three months of the year. This marks the third consecutive week of reductions.

Millennials and first-time home buyers are expected to continue buying homes regardless of a mortgage rate increase, according to real estate and title professionals.

Higher interest rates have caused some prospective homebuyers to consider buying a smaller home or a home in a less affluent neighborhood.

With mortgage rates and home values on the rise, home buyers are expected to contribute approximately 15.8 percent of median monthly income towards their mortgage payment.

Rates on 30-year and 15-year FRMs, as well as those on five-year ARMs, have dropped slightly since last week, remaining within two basis points for the past three weeks.

Two mortgage-focused firms have developed an integration which vastly increases the efficiency of lenders looking to hedge their loans.