Mortgage Rates Edge Down

Gladys Abbott
May 19, 2017

The borrowing cost on 30-year mortgages, the most widely held type of US home loan, averaged 4.02 percent in the week ended May 18, down from 4.05 percent the previous week, the mortgage finance agency said.

US markets have been in turmoil this week over concerns about President Donald Trump's economic agenda. On Thursday, however, stocks were trading higher.

Fixed-rate mortgages are showing their lowest average rates since November 14, 2016, according to the NerdWallet Mortgage Rate Index.

The rate on 15-year mortgages eased to 3.27 percent from 3.29 percent last week. Other key rates also fell marginally.

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This chart shows the movement of mortgaged rates over the past year.

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets. This is down from last week's 4.05% but up from last year's 3.58%. Bond prices rose as investors shunned riskier assets.

Nervous investors and political uncertainty are causing some mortgage market observers to consider a new interest rate wrinkle: the possibility that the Federal Reserve may delay an expected short-term rate hike. The best 30 year jumbo loans are 4.400% with an April of 4.4678%. The refinance index dropped 6 percent, while the purchase index tumbled 3 percent. Interestingly, none of this week's respondents predict a rebound in mortgage rates in the next seven days. "Purchase volume is running more than 9 percent above last year's pace, with conventional purchase application volume up more than 12 percent".

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