The roller-coaster ride of mortgage rates are up from the previous week. Today, Freddie Mac released their weekly rate survey and the benchmark 30 Year Fixed Rate mortgage moved up to 4.370%. The increase week over week is only nine basis point as the previous week was 4.280%. The popular 15 Year Fixed Rate mortgage moved up six basis points to 3.280%.
The data presented is like a big yawn as any movement within twenty-five (.250%) basis points is considered normal movement. While this past week had very little news impacting mortgage rates, one factor for the increase was the monthly unemployment numbers, which came in better than projected.
On another note regarding recent application data, there has been a decline of overall applications. As reported by the Mortgage Bankers Association, even though refinance transactions account for a tad less than 60% of overall applications, purchase applications showed an increase. This is an important metric as mortgage rate movement is based on supply and demand. As the demand increases, rates will also increase and vice-versa should movement go in the other direction.
Freddie Mac is a critical source in communicating interest rate movement. The weekly survey is comprised of lenders who sell mortgages to them. While the market is rate neutral, lenders use it to gauge the cost consumers will pay to obtain whatever rate they are seeking.