Real Estate News

Week of June 19 brings mostly solid mortgage rates, says source

Published: 21 Jun 2017

The penultimate week of June brought relatively stable mortgage activity, according to some recent figures. The NerdWallet Mortgage Rate Index said that the week's levels began "on a steady note" after some small signs of fluctuation. For both 30 and 15-year fixed-rate mortgages, the period between June 5 and 6 represented a dip before a minor apparent course correction.

This source said that 5/1 ARM's declined by .01 percentage point between June 16 and 19. Other than that, the previous fixed-rate mortgages maintained the same level, with 15-year fixed-rate mortgages staying at 3.85 percent and 30-year fixed rate mortgages staying at 4.02 percent.

Going back to May 17, this Index seemed to show the most consistency for the 15-year fixed-rate mortgages, as they spent the period between May 17 and June 2 vacillating solely between 3.81 and 3.82 percent. Comparatively, though, all three appear to be in relatively the same place, the article added.

Mortgage applications also seem to be in a positive state, as the Mortgage Bankers Association said. In a June 15 statement, that organization's Vice President of Research and Economics, Lynn Fisher, said that the near future could show positive conditions for possible home buyers.

"While March has signaled the peak in applications for new homes for the last two years, we may see more sustained activity throughout the balance of this year as demand for new homes continues to increase and strong house price growth continues to motivate homebuilding," Fisher explained.

The statement specifically stated that May 2017 saw a year-over-year 15 percent jump in new home purchases, without any seasonal adjustment. Of the loan applications mentioned, the source noted that the majority (69.2 percent) were conventional loans, and that an estimated 57,000 homes were sold in May alone.