The saga of the euro zone bailout resembled an old “Perils of Pauline” movie this week as fear and relief traded places regularly. First, investors worried that the euro zone member nations would be unable to reach a deal to avert a Greek default and stabilize the euro. Then, after a deal was announced to general relief, Greece’s prime minister announnced he would put the matter up to a popular vote, sending the markets back into a tizzy. Now, the referendum has been called off and markets are breathing another sigh of relief. The net result, however, was good news for those in the market for real estate in Philadelphia and elsewhere.
That’s because the turmoil caused investors to pour money into U.S. debt securities, causing mortgage interest rates to plummet, except on the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, which is a trailing survey that measures activity in the calendar week preceding its release. On the two current-week surveys, the drop was pronounced.
Here are the national average mortgage rates on this week’s weekly surveys. Unless otherwise noted, rates are for 80% loan-to-value ratio mortgages and assume good credit.
Mortgage Bankers Association – Weekly Mortgage Applications Survey, week ending Oct. 28
30-year fixed-rate conforming loan: 4.31%, -2 points, with 0.49 points, +0.02 point
30-year fixed-rate jumbo loan: 4.69%, +1 point, with 0.45 points, +0.03 point
30-year fixed-rate FHA-guaranteed loan: 4.09%, -2 points, with 0.51 points, -0.1 point
15-year fixed-rate loan: 3.63%, +1 point, with 0.45 points, unchanged
5/1 adjustable-rate loan: 3.09%, -2 points, with 0.5 points, unchanged
Bankrate.com: Week ending Nov. 2
30-year fixed-rate loan: 4.23%, -10 points
15-year fixed-rate loan: 3.48%, -9 points
5-year ARM: 3.18%, -4 points
Loans this week averaged 0.38 points.
Freddie Mac: Primary Mortgage Market Survey®, week ending Nov. 3
30-year fixed-rate loan: 4%, -10 points, with 0.7 points
15-year fixed-rate loan: 3.31%, -7 points, with 0.7 points
5-year ARM: 2.96%, -12 points, with 0.6 points
1-year ARM: 2.88%, -2 points, with 0.6 points
One basis point equals one hundredth of one percent. One discount point represents one percent of the total value of the mortgage, paid as interest up front.
Mortgage applications rose slightly in the previous week, according to the Mortgage Bankers Association survey, with new purchase loan applications accounting for all of the total rise. Refinance applications fell, losing overall market share for the fourth week in a row. With rates headed back down, this trend could reverse in next week’s report, but at present, it indicates that buyers who can qualify for loans remain interested in homes on the market and are ready to take advantage of very attractive interest rates.