Categorized | Finance and Mortgage

Mortgage rates unaffected by debt-ceiling uncertainties

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The qualms regarding the debt-ceiling have done little to help or hurt mortgage rates. The most recent survey from Freddie Mac, one of America’s biggest buyers of home mortgages, shows that rates on 15-year fixed-rate mortgages remained absolutely stagnant this week at 3.66%. While the 15-year fixed-rate mortgages showed no change, the rates on 30-year fixed-rate mortgages showed very little. In fact, the same survey shows that 30-year fixed-rate mortgages rose only .03% to 4.55% this week.

As for adjustable-rate mortgages, they, too, saw little change. Five-year hybrid adjustable-rate mortgages are down .02% from last week, checking in at 3.25% on average. One-year adjustable rate mortgages also saw a .02% decline, coming in at 2.95% as compared to 2.97% last week.

Although these mortgage interest rate numbers showed little change week over week, there is some good news in that the index of leading indicators beat the market consensus forecast, and actually increased for the second consecutive month. Home prices are going up, and while some of the increases can be attributed to seasonal home buying trends, that should be considered a positive indication of what’s to come. In fact, the S&P/Case-Shiller 20-City Composite index has hit its highest reading since January, and indicates that home values in seventeen of twenty major cities demonstrated increases. That is a considerable improvement over the numbers from May of last year.

While political officials in Washington continue to battle it out over such issues as the debt ceiling, the mortgage market seems to walking its own path, so far avoiding the worries surrounding the debt-ceiling.

 

 

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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