A recent jump in long-term rates and bond yields increased the Freddie Mac average for the week ending Jan. 10 by six basis points from the previous week, but at 3.4% it remains attractive.
“It’s still strong refi market right now. Rates are still [near] historical lows. People have their applications and, in many instances, are waiting to pull the trigger,” Al Crisanty, vice president, national wholesale director of 360 Mortgage, told this publication.
However, he noted, not every borrower reacts the same way to rising rates in every situation. “You’re trying to monitor consumer mentality and it can be all over the board sometimes.”
Crisanty said, “In this particular scenario, with an uptick in rates, we’re seeing a quick and kind of a rapid move to lock the loans in right now.” But “if rates drop down again you may see that taper off.”
The average rate for a 15-year fixed-rate mortgage also rose in Freddie Mac’s survey. It was up two basis points from the previous week at 2.66%.
Shorter-term mortgage rates were mixed in the survey, with the average rate for a five-year Treasury-indexed hybrid down by four basis points at 2.67% and the average rate for a one-year Treasury-indexed adjustable-rate mortgage up by three basis points at 2.6%.
Average points remained lowest for one-year Treasury ARMs at 0.5 of a point, followed by five-year Treasury hybrids at 0.6 of a point and fixed-rate mortgages at 0.7 of a point.
A year ago, weekly rate averages in the survey were as follows: 3.89% for a 30-year FRM, 3.16% for a 15-year FRM, 2.82% for a five-year Treasury hybrid and 2.76% for a one-year Treasury ARM.