For the week of April 5 the mortgage rate averages have continued to move generally sideways without any significant change. Despite the momentum three weeks ago, the rise in the averages has essentially stopped and is now showing strong signs of falling backward. Currently, the best option available for a 30-year mortgage this week sits in the sites of 3.5 percent, with some lenders still as high as 3.625 percent.
Both rate averages and mortgage-backed securities have seen little movement this week, which many expect over a long period will result in eventual further weakening of rates. A Friday job report is expected tomorrow from the federal government, which is anticipated to potentially knock the rate figures off their doldrums, depending how the numbers come out, positive or negative. Some think the report might go negative thanks to drawbacks in federal spending. On the other hand, while the Cyprus government bailout by Europe turned out to be a non-event for mortgage rates, the boom in housing sales is causing everyone to chomp at the bit for processing sales, including both homebuyers and lenders.
Given the potential of the rates to drop to 3.5 percent as this week closes, locking was being used frequently through the weekend in anticipation of further borrowing advantages early this week. That said, most loan applications stayed the same with the non-movement in the market.
So for the week, mortgage rates for 30-year fixed loans hit 3.625 percent and lower, while the 15-year counterpart posted at 2.875 percent. Government FHA/VA loans are floating between 3.25 and 3.5 percent. Finally, the five-year adjustable rate mortgage stayed in the range of 2.625 percent and 3.25 percent.