Mortgage rates stabilized in the week ending 11^th March. 30-year fixed rates rose by 4 basis points, following on from a 2 basis point rise from the previous week. The 4 basis point rise took 30-year rates to 4.12% according to figures released by Freddie Mac.

Following the weekly uptick, 30-year fixed rates stood 30 basis points below levels from 12-months ago.

More significantly, 30-year fixed rates have fallen by 82 basis points since last November’s most recent peak of 4.94%.

Economic Data from the Week

Economic data released through the last week included factory orders, job openings, and inflation figures through to Wednesday.

Softer inflation figures provided support to the FED’s shift in policy and plan to hold rates unchanged for the current year. Job openings were also on the softer side, but not to a level that would raise red flags. Of greatest significance at the start of the week was a fall in industrial production, though this had been forecasted.

Outside of the numbers, the FED released the FOMC meeting minutes on Wednesday, which provided support for riskier assets.

Sentiment through the week improved, with even a downward revision to growth forecasts by the IMF having little impact on market risk appetite.

Freddie Mac Rates

The weekly average rates for new mortgages as of 11^th April were quoted by Freddie Mac to be:

• 30-year fixed rates rose 4 basis points to 4.12% in the week. Rates were down from 4.42% from a year ago. The average fee held steady at 0.5 points.

• 15-year fixed rates also rose by 4 basis points to 3.60% in the week. Rates were down from 3.87% from a year ago. The average fee held steady at 0.4 points.

• 5-year fixed rates increased by 14 basis points to 3.80% in the week. Rates increased by 19 basis points from last year’s 3.61%. The average fee remained unchanged at 0.4 points.

According to Freddie Mac, mortgage application demand eased slightly following the previous week’s 2^nd largest weekly increase in applications over the last 12-months.

In spite of the recent uptick in mortgage rates, Freddie Mac expects mortgage rates to remain low, in line with 10-year treasury yields, supporting homebuyer demand in the coming months.

Mortgage Bankers’ Association Rates

For the week ending 5^th April, rates were quoted to be:

• Average interest rates for 30-year fixed, backed by the FHA, increased from 4.41% to 4.42%. Points remained unchanged at 0.48 (incl. origination fee) for 80% LTV loans.

• Average interest rates for 30-year fixed with conforming loan balances increased from 4.36% to 4.40%. Points increased from 0.44 to 0.47 (incl. origination fee) for 80% LTV loans.

• Average 30-year rates for jumbo loan balances increased from 4.21% to 4.28%. Points increased from 0.25 to 0.28 (incl. origination fee) for 80% LTV loans.