Mortgage rates hold above 4%

Marco Green
May 20, 2017

Mortgage buyer Freddie Mac said Thursday the average rate on 30-year fixed-rate home loans slipped to 4.02 percent from 4.05 percent last week. A year ago at this time, the 5-year ARM averaged 2.80 percent. The government-backed mortgage-backer aggregates rates weekly from 125 lenders from across the country to come up with national average mortgage rates.

"The delayed impact of the associated decline in Treasury yields may push mortgage rates lower in next week's survey", Freddie Mac chief economist Sean Becketti said in a statement.

And now, 's stock price rose to 50.74 up +0.27. The yield on the 10-year Treasury has gone down 20 basis points in just over a week.

The vast majority of mortgages are underwritten to strict standards set by the US government or quasi-government entities Fannie Mae FNMA.PK and Freddie Mac FMCC.PK . As a result, many prospective homebuyers who can not come up with a 20 percent down payment are unable to get a loan.

Amid growing worries that deepening political turmoil in Washington will hinder President Donald Trump's plans to enact tax cuts and other business-friendly policies, the stock market had its steepest drop since September on Wednesday. The best 20 year fixed rate mortgages at the bank are 3.625% today carrying an April of 3.764%. The market composite index - a measure of total loan application volume - decreased 4.1 percent.

The average loan size for purchase applications had a survey high of $322,300.

Other reports by Click Lancashire

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