Mortgage rates fall for the week of April 28, 2014

Posted by  on May 05, 2014

The release of poor economic data often depresses mortgage rates. And, sure enough, the Bureau of Economic Analysis's publication on April 30 of dire real GDP figures caused those rates to soften.

Mortgage rates last week

The average rate for 30-year fixed-rate mortgages (FRMs) dropped back to 4.37 percent with 0.12 points last week, down from 4.41 percent with 0.11 points during the previous seven days, according to HSH.com. The latest rate is just one basis point (0.01 percent) above 2014's low of 4.36 percent, reached in February and April. As usual, FHA-backed 30-year FRMs came with lower rates (they averaged 4.12 percent through April), but savings may be offset by higher mortgage-insurance payments.

Rates for 15-year fixed-rate mortgages (FRMs) also fell, by three basis points to 3.56 percent, while those for 30-year 1/1 adjustable-rate mortgages (ARMs) crept up seven basis points to 2.84 percent. Our live database of current mortgage rates can help you find the best mortgage rates in your area.

Mortgage rates next week… and next year?

Better-than-expected employment numbers were reported on Friday (up 288,000 in April, with March and February's job growth figures both revised upward) a welcome change, but that may result in mortgage rates edging up this week.

Meanwhile, the weekend saw speculation about less imminent rate changes, with Reuters reporting Princeton economics professor Alan Blinder predicting markets getting rattled in late summer as war breaks out in the Federal Reserve's rate-setting committee over policy. He also said he expected rates to rise quickly (faster than they fell when quantitative easing was begun), once the Fed starts to sell off its huge stock of securities.

Dallas Fed President Richard Fisher seemed to suggest that could happen sooner rather that later when he told Fox News on Sunday that he thought the Fed would discontinue buying bonds in October. But he went on to make a joke that may have been intended to dampen the sort of fevered speculation that itself can trigger rate rises: "I'll make this prediction: Sometime in the next 100 years, interest rates will go up."

Time to act?

Of course, Fisher is right: Nobody can with certainty forecast what's going to happen to rates later today, let alone later this year or next. But, with so many experts expecting significant rises in months rather than years, you may think that now is a good time to secure that home loan or refinancing. And, if you do think that, you're just a click away from being able to compare mortgage rates and get quotes.

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