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Mortgage rates dipped back down for now due to fewer mortgage and refinancing applications. With rates remaining historically low this provides a boost to the housing market to further rebound.
Average 3-year fixed mortgage dips to 4.3%
Average fixed-rate mortgages nationwide fell the week ended July 3 as
home buying and refinancing demand slumped and a recent spike in market
rates subsided.
The average rate on a 30-year fixed mortgage
nationwide dipped to 4.29% after hitting a two-year high of 4.46% a week
earlier, according to Freddie Mac's weekly survey of USA lenders.
The
week ended June 27, average 30-year fixed mortgages jumped from just
below 4% to nearly 4.5%, the biggest one-week jump since 1987, home loan
Freddie Mac said.
Driving mortgage rates lower: Mortgage
applications slumped 11.7% the week ended July 3, according to a
Mortgage Bankers Association survey of lenders. And refinancing
applications sank 16% week over week, hitting the lowest level since
July 2011.
"At these rates, many fewer homeowners have an
incentive to refinance, and refinance application volume declined more
than 15%," said Mike Fratantoni, MBA's vice president of research and
economics, said in a statement.
Still, mortgage rates remain low by historical standards. And if the
one-week dip continues, a rebound in the housing market, which has been
crucial to improving economic growth this year, could get a boost.
Mortgage
rates will also be helped if a market rates, which subsided this week
after spiking the final two weeks of June, hold steady or continue
falling. The bellwether 10-year Treasury note yield was trading at 2.47%
Wednesday after hitting a 22-month high of 2.66% in late June.
The
average rate on the 15-year fixed mortgage fell to 3.39% from 3.5% a
week ago. The same week a year ago, the rate on the 30-year fixed
mortgage was 3.62% and the 15-year fixed mortgage was 2.89%
Source: http://www.usatoday.com/story/money/markets/2013/07/03/mortgage-rates-7-3/2485835/
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