Average mortgage rates end week unchanged as trade worries ease
Mortgage rates remained unchanged as investors' concerns over U.S. foreign trade policy, which triggered the previous week's drop, were moderated, according to Freddie Mac.
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"Mortgage rates were mostly unchanged from last week due to easing of trade tensions with Mexico which helped stabilize markets. These historically low rates should provide continued opportunities for current homeowners to refinance their mortgages — which combined with new homebuyer activity — will help sustain the momentum in the housing market in 2019," Sam Khater, Freddie Mac's chief economist, said in a press release.
But even though rates started and ended the week in the same area, there was plenty of volatility during the seven-day period, Matthew Speakman, an economic analyst at Zillow, said when that company released its rate tracker.
"Friday's underwhelming jobs report sent rates skidding lower, continuing their weeks-long downward trajectory towards long-term lows," he said. "But Monday's news that tariffs on goods imported from Mexico would not go through as planned nudged bond yields back upwards and mortgage rates followed suit, a trend that continued through Tuesday."
"This rebound was modest, however, as bond markets remain attuned to the fact that mounting risks to the global economic outlook — specifically the enduring trade tensions between China and the U.S., Brexit and low expectations for the pace of inflation — may motivate the Federal Reserve to cut the federal funds rate at least once this calendar year. As a result, it’s unlikely that major rate movements will occur ahead of next week's FOMC meeting, though Friday’s retail sales data release could move the market if it shows some surprising results," Speakman added.
The 30-year fixed-rate mortgage averaged 3.82% for the week ending June 13, unchanged from last week. A year ago at this time, the 30-year fixed-rate mortgage averaged 4.62%.
The 15-year fixed-rate mortgage averaged 3.26%, down from last week when it averaged 3.28%. A year ago at this time, the 15-year fixed-rate mortgage averaged 4.07%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.51% with an average 0.4 point, down from last week when it averaged 3.52%. A year ago at this time, the five-year adjustable-rate mortgage averaged 3.83%.