Mortgage Giant, Freddie Mac released this weeks Prime Mortgage Market Survey (PMMS) showing the average mortgage rates on a fixed rate mortgage rising slightly this week and the percentage of all new applications that were seeking refinancing slipped from 46.9% to 46.2%, this is the lowest level since November of 2008.
The surveys reveals the following:
30-year fixed-rate mortgage (FRM) averaged 4.16 percent with an average 0.5 point for the week ending February 23, 2017, showing a small incline from last week when it averaged 4.15 percent.
15-year FRM this week averaged 3.37 percent with an average 0.5 point, showing an incline from last week when it averaged 3.35 percent.
5/1-year ARM averaged 3.16 percent this week with an average 0.4 point and a 2.74 margin, dropping from last week when it averaged 3.18 percent.
The steadyrise in the mortgage rates was fueled by a decline in U.S. bond prices after election day. Investors flooded to the stock market and pulled out of the bond markets causing Treasury yields to spike. These high rates can affect the housing recovery, making home buying less affordable. This time last year the rates on a 30-year-fixed-rate mortgage was at 3.66 percent.
This week, 33% of the Bankrate panelists believe that mortgage rates will rise over the next week or so, while 17% think that the rates will fall. Half believe that the rates will move only plus or minus 2 basis points, therefore remaining relatively steady.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.