Overall, mortgage rates ticked down a bit yesterday, however some lenders’ rate sheets were showing a tad higher rates. Mortgage interest rates are hovering near all-time lows, following the announcement of the Fed’s bond purchase plans.
As we mentioned in our previous mortgage reports, this week looks particularly light on economic data, therefore we don’t anticipate significant changes in rates, until something largely decisive happens. We rather expect that besides domestic economic data, mainly news and rumors from Europe will have impact on mortgage rates this week.
During last week, Bankrate (NYSE:RATE) published the results of its weekly mortgage survey. According to the results the average rate for the 30-year FRM edged higher to 3.81%, which marks 2 basis points of increase compared to data from a week earlier. In case of the 15-year fixed counterpart, the average rate remained firm at 3.04%. The survey was conducted one day before the Fed’s announcement about further quantitative easing.
According to mortgage experts surveyed by Bankrate, 43 percent of respondents predict that interest rates will remain unchanged in the next seven days. 36 percent of them believe that rates will move higher and only 21 percent of them forecast a decline in mortgage rates.
Borrowers who are looking to take out a new debt and are considering the 30-year fixed mortgage, will see this package being offered at KeyBank (NYSE:KEY) at a rate of 3.580% with an APR amounting to 3.651% as of Wednesday. As for the 15-year fixed alternative, interested would-be borrowers can expect to pay 2.950% in interest and 3.075% by way of APR.
Coming to mid-week, KeyBank offers the 7/1 ARM for as low as 2.625% which is accompanied by an APR sum of 3.032%. At present, the initial interest rate on the 5/1 ARM is 2.460% and it bears an annual percentage rate of 3.045%.
Refinance rates at Branch Banking and Trust (NYSE:BBT) remained unchanged on Wednesday, and are still carrying those low levels seen earlier this week. The long-term, 30-year fixed mortgage loan is coming out at 3.750% plus an APR variable of 3.816%. BB&T Bank’s 15-year fixed package can be locked and taken home at a rate of 3.250% with an APR yielding to 3.367%.
For those who want to try their luck on a long-term FHA-insured loan, may find BB&T Bank’s 30-year fixed FHA an ideal solution, as it’s up for grabs at a rate of 3.250% and carries an APR of 3.466%. For your refernece, this type of loan was offered last week at a rate of 3.500%.
Another major lender, Citibank (NYSE:C) advertises the standard 30-year fixed refinance package at a competitive rate of 3.500% which has an annual percentage rate of 3.650%. The 15-year FRM can be taken out for as low as 2.875% plus an APR figure of 3.105% as of Wednesday.