Mortgage Giant, Freddie Mac released this weeks Prime Mortgage Market Survey (PMMS) showing the average mortgage rates on a fixed rate tick down this week after holding steady the week before.
The surveys reveals the following:
30-year fixed-rate mortgage (FRM) averaged 3.9% dropping from 3.94% last week, with an average 0.4 point for the week ending November 09, 2017 this showing a .04% decline from last week.
15-year FRM this week averaged 3.24% dropping from 3.27% with an average 0.5 point, showing a .03% drop from last week.
5/1-year ARM averaged 3.22% percent this week from 3.23% with an average 0.5 point, dropping .01% from the week before.
The mortgage rates have remained steady for the last couple of weeks as the Government prepares to release te Republican tax overhaul plan. Mortgage rates ticked downward at the end of last week following the release of the GOP tax plan and have held steady early this week, said Aaron Terrazas, a senior economist at Zillow. The much-anticipated official nomination of Jerome Powell as the next chair of the Federal Reserve and strong jobs report were already priced in, and had little impact on rates. There are no major economic releases scheduled for this week, so markets are likely to be watching for any major announcements on tax reform progress.
The 10-year Treasury bond is linked closely to the mortgage rates and serve as an indicator of where the mortgage rates are going. The Treasury yield fell 7 base points this week, causing the mortgage rates to also fall.
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.