It was in the middle of July when mortgage rates were at 4%. Based on yesterday’s mortgage rate survey the benchmark 30 years mortgage jumped six basis points in week over week reporting and came in at 3.960%. Most know rate movement is cyclical so the increase must be viewed based on trends not as an isolated incident.
Industry experts attributed the jump to the increase of the yields on the 10-year Treasury bond, which jumped nearly 10 basis points. The 10-year bond is the primary indices which affect movement on the 30-year mortgage.
The markets reacted based on anticipation that a tax deal may be accomplished? Also, yesterday the Senate passed procedural regulations known as a budget resolution making it a bit easier for a deal to be reached. If things work out as projected, it would mark a key win for the Trump administration which has been bogged down since taking office by not being able to tout any legislative victories.
In the meantime, homeowners who are purchasing a property or attempting to refinance their existing mortgage are gauging rates to make sure their budgets are not negatively impacted.
Here is a snapshot of this week’s rates:
October 26, 2017
|30-Yr FRM||15-Yr FRM||5/1-Yr ARM|
|Fees & Points||0.5||0.5||0.4|
The Freddie Mac rate survey is published every Thursday. It is an industry standard and used to gauge mortgage movement.