Yahoo Finance

Mortgage rates rose slightly in the week ending 13^th February, ending a run of 3 consecutive weeks in the red.

In spite of the weekly rise, mortgage rates were at the lowest level since 26^th October 2019, when 30-year rates had also stood at 3.47%. Historically, rates sat just 15 basis points above a historical low 3.32% back in November 2012, according to figures released by Freddie Mac.

Compared to this time last year, 30-year fixed rates were down by 90 basis points.

30-year fixed rates were also down by 147 basis points since November 2018’s most recent peak of 4.94%.

Economic Data from the Week

It was a relatively busy week on the economic data front. Key stats through the 1^st half of the week included December JOLTs job openings and January inflation figures.

Outside of the numbers, FED Chair Powell delivered testimony to Congress, which also influenced U.S Treasuries.

Market sentiment towards COVID-19 updates from China was the key driver through the week, however.

After a testy start to the week, risk appetite returned on Tuesday, sinking Treasury yields as numbers from China suggested that the spread of the virus was easing.

U.S equities hit record highs in response, before a pullback through the 2^nd half of the week.

Freddie Mac Rates

The weekly average rates for new mortgages as of 13^th February were quoted by Freddie Mac to be:

• 30-year fixed rates increased by 2 basis points to 3.47% in the week. Rates were down from 4.37% from a year ago. The average fee remained unchanged at 0.7 points.

• 15-year fixed rates remained unchanged at 2.97% in the week. Rates were down from 3.81% compared with a year ago. The average fee increased from 0.7 points to 0.8 points.

• 5-year fixed rates decreased by 4 basis points to 3.28% in the week. Rates were down by 60 points from last year’s 3.88%. The average fee rose from 0.2 to 0.3 points.

According to Freddie Mac, mortgage rates sat at close to a 5-decade low. Refinance activity was on the rise, surging to the highest level in 7-years.

The upswing in refinancing and strong purchase activity meant that total mortgage demand remains robust, reflecting a solid economic backdrop.

Mortgage Bankers’ Association Rates

For the week ending 7^th February, rates were quoted to be:

• Average interest rates for 30-year fixed, backed by the FHA, increased from 3.80% to 3.84. Points remained unchanged at 0.26 (incl. origination fee) for 80% LTV loans.

• Average interest rates for 30-year fixed with conforming loan balances increased from 3.71% to 3.72%. Points remained unchanged at 0.28 (incl. origination fee) for 80% LTV loans.

• Average 30-year rates for jumbo loan balances increased from 3.70% to 3.75%. Points decreased from 0.19 to 0.17 (incl. origination fee) for 80% LTV loans.