Real Estate News

Change of direction for mortgage rates at end of April

Published: 28 Apr 2017

As April closes out, the mortgage rates seem to be shifting, at least for some classes of loans. In a press release, Bankrate said that mortgages were rebounding, and suggested that may be because of a relative optimism following three weeks of international uncertainty and downward trends.

As of that time, April 27, the source said that 30-year fixed-rate mortgage rates were roughly .03 percent higher than they had previously been, to reach a level of 4.19 percent. The highest growth actually belonged to 15-year fixed mortgages, which grew to 3.43 percent from 3.35 percent, also in the span of a week. The fact that this upward change of pace has been relatively rare recently could be part of the reason to take note of it.

Freddie Mac has collected information about mortgage fluctuations in both April and March summarized as part of a greater picture of recent trends. According to this data, April is notable for seeing the 30-year fixed mortgage rates decline under 4 percent, a rarity for this period of 2017. Among all of the weekly statistics mentioned between January 5 and April 27, the highest was on March 16, when it reached 4.30 percent.

This was also the date of the highest 15-year mortgage rate listed, which was at 3.5 percent  However, the peak ARM amount during these months was on January 5, when it was at 3.33 percent. As usual, it may take more perspective to tell if this is actually a "shift" or just a temporary change in course.

The Mortgage Bankers Association recently announced a plan for Secondary Mortgage Market reform, with a clear layout for market conduct, among other things. The plan also included a "continuum" model to demonstrate financing for affordable housing.