Mortgage rates tick up following Greek debt deal
Posted on Friday, July 17, 2015 at 5:24:52 PM
Mortgage rates rose slightly higher this week in the wake of the Greek debt deal.
U.S. Treasury bond yields fell last week, but the good news coming out of the eurozone this week helped fuel a turnaround. Though Greek negotiations produced news recently, discussions will continue, and will likely affect U.S. interest rates in the future.
The benchmark 30-year fixed-rate mortgage increased to 4.17 percent from 4.14 percent on news of the Greek deal, Bankrate's July 15 survey of lenders found. Over the past 52 weeks, the 30-year fixed has averaged 4.04 percent.
Meanwhile, a Mortgage Bankers Association survey found that refinances rose 4 percent for the week ending July 10, according to Nerdwallet. Mortgage applications, however, fell 1.9 percent from the week before, as less people sought residential financing following the slight jump in rates.
"The crisis in Greece continues to generate volatility in U.S. Treasury yields. The tentative agreement hammered out last weekend gave investors the confidence to pull back a bit from Treasuries," Sean Becketti, chief economist for Freddie Mac, explained in a release, according to the news source. "As a result, the average rate on a 30-year fixed-rate mortgage rose five basis points this week to 4.09 percent, the highest level since October of last year."