Skip to main content

Mortgage Rates Up While Credit Availability Stalls

Phil Hall
Mar 03, 2016
For the first time in 2016, Freddie Mac is reporting an uptick in fixed-rate mortgages (FRMs)

For the first time in 2016, Freddie Mac is reporting an uptick in fixed-rate mortgages (FRMs).

According to Freddie Mac’s Primary Mortgage Market Survey (PMMS) for the week ending March 3, the 30-year FRM averaged 3.64 percent, up from last week when it averaged 3.62 percent. However, it is still below last year’s 3.75 percent average. The 15-year FRM this week averaged 2.94 percent, up from last week when it averaged 2.93 percent but still below last year’s 3.03 percent average. And the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.84 percent this week, up from last week when it averaged 2.79 percent but still below last year’s 2.96 percent.

"The market turbulence that kicked off the year subsided at the end of February, providing at least a temporary break in the flight to quality,” said Sean Becketti, chief economist at Freddie Mac. “Treasury yields approached their highest level in a month, boosting the 30-year mortgage two basis points this week to 3.64 percent. Despite this welcome breather, Fed officials have been highlighting the downside risks to the economic outlook, and the market expects the Fed to refrain from any further short-term rate increases for now."

The uptick in mortgage rates was not shared in the level of available mortgage credit. According to the latest data from the Mortgage Bankers Association (MBA), the Mortgage Credit Availability Index (MCAI) remained unchanged at 123.8 in February. Of the four component indices, two saw increases—the Conforming MCAI was up one percent and the Government MCAI was up 0.6 percent—while the Jumbo MCAI decreased 0.6 percent and the Conventional MCAI decreased by 0.8 percent. 

"Slight declines in conventional programs aimed at low-to-moderate income borrowers were offset by increasing availability of government-backed programs," said MBA Vice President of Research and Economics Lynn Fisher. "More than half of the investors in our credit availability data set are now offering some form of a conventional low down payment loan program, targeted at lower income borrowers and first-time home buyers that generally allows a down payment as low as three percent."

Published
Mar 03, 2016
Guild Mortgage Announces Medical Professional Mortgage Program

Guild Mortgage introduced a new mortgage product to help medical professionals buy their first home with no down payment.

Industry News
Oct 27, 2021
Mortgage Coach And HomeBinder Partner On New Integration For Homeowners

Mortgage Coach announced a new integration with HomeBinder aimed to help homeowners stay connected with their lenders.

Tech
Oct 27, 2021
Non-QM Lender Angel Oak Appoints David Raju As Group CIO

Firm continues to seek ways to optimize data and improve technology capabilities.

Non-QM
Oct 27, 2021
Evergrande Steadily Repays Debt While Taking On New Risk

Evergrande Chairman Hui Ka Yan has ambitious plans, signaling last Friday that the firm wants to move away from housing and focus on making electric cars. 

Industry News
Oct 26, 2021
Planet Home Lending Reports Q3 Gains In Asset Management, Servicing And Originations

The Planet Home Financial Group, LLC, parent company of Planet Home Lending, LLC and Planet Management Group, LLC reported steady growth across its servicing, correspondent and private-client channels.

Industry News
Oct 26, 2021
CFPB, DOJ And OCC Hit Trustmark National Bank For 'Deliberate' Redlining

The Consumer Financial Protection Bureau and U.S. Department of Justice, in conjunction with the Office of the Comptroller of the Currency are taking action against Trustmark National Bank for alleged redlining violations.

Industry News
Oct 25, 2021