Mortgage rates rise to 9-month high
Posted on Thursday, July 2, 2015 at 10:49:29 AM
Mortgage rates rose again, with the benchmark 30-year fixed mortgage rate reaching a nine-month high.
With the U.S. economy showing positive signs, 30-year mortgage rates ticked up from 4.16 percent to 4.19 percent, according to Bankrate.com's weekly survey, conducted each Wednesday. The way things are looking, it's almost certain the Federal Reserve will raise interest rates soon, which keeps mortgage rates moving.
Though 30-year fixed mortgage rates ticked upward once again, those for 15-year fixed mortgages and jumbo 30-year fixed mortgages each sank, the former to 3.34 percent, and the latter to 4.18 percent. This marks just the second time the average rate for a jumbo 30-year fixed rate mortgage is lower than that of a conventional 30-year fixed rate mortgage.
This could bring another tumble for mortgage applications, which, according to The Street, fell in the week ending June 26 after rates jumped to an eight-month high. Each time rates tick up, the typical response is usually for people to back off from residential financing.
Though applications are falling, with rates jumping slightly weekly, a home loan now could represent savings over a mortgage next week for some potential homebuyers.