While speculation about the possibility of a "double-dip" recession continues, bond yields have risen slightly over the past week, pushing up 30-year mortgage rates by a few basis points.
According to figures compiled by Freddie Mac, the average rate on a 30-year fixed-rate loan rose to 4.35% for the week ending Sept. 9 from 4.32% the previous week. A year ago 30-year FRMs averaged 5.07%.
The rise in yields suggests that, "Perhaps it's less likely that there will be a double-dip recovery," Freddie Mac chief economist Frank Nothaft told National Mortgage News.
(On Wednesday, the Mortgage Bankers Association reported that purchase money loans are picking up, but ever so slightly.)
Nothaft said there are only "small, subtle changes in expectations" and low rates that have caused refinancings to dominate weekly loan applications. He expects refis to be strong into the fourth quarter.
He believes any upward pressure on rates will be "very modest" with 30-year FRMs staying under 5% this year.
The average rate for a 15-year fixed rate remained at 3.83% during the most recent week, down from 4.5% a year ago.
Average points during the week ending Sept. 9 were 0.7 for one-year ARMs and 30-year mortgages, and 0.6 for 15-year and five-year Treasury products.
