The signs of an improving economy are more visible now with a string of improving economic data including a drop in U.S. jobless claims. The U.S. labor market is at its lowest jobless claims’ standard since November 1973 with 255,000 claims coming in during the week ending on July 18. Mortgage Bankers Association (MBA) echoed a similar optimistic sentiment in their mortgage origination forecast for the current and next year. According to MBA, purchase mortgage originations for the current year are likely to reach $801 billion indicating an upside of $71 billion from their previous forecast. Similarly, the institute is expecting purchase mortgage originations of $885 billion for fiscal year 2016 with an upgrade of $94 billion from their previous estimate.
On the other hand, some dismal earnings reports from European corporate bellwethers such as Caterpillar have had a negative impact over the global share market. American Express was another major company to report lower than expected growth in its revenue. All the major stock indexes excluding Nasdaq composite were down at the time of reporting. A deterring earnings season has also had its effect on U.S. dollar, although lower jobless claims helped the currency hold some ground. On the contrary, U.S. treasury yields were comparatively higher after a positive labor market data further heightening the chances of a hike in mortgage interest rates later this year.
According to Bankrate.com, a 30-year fixed rate mortgage is available at an interest rate of 4.12% on July 23, 2015. Its smaller variable, 15-year fixed rate mortgage, is available at a National average interest of 3.30%. Following the interest rates of fresh mortgages, a 30-year fixed rate refinance loan is available at an interest of 4.14% whereas a 15-year fixed rate refinance loan comes at an interest rate of 3.30%.
Bank of America has an asking rate of 4.000% for a 30-year fixed rate mortgage loan for the top-tier borrower. The bank is charging 3.250% interest for a 15-year fixed rate mortgage loan. Its 30-year fixed rate refinance loans and 15-year fixed rate refinance loans are available at interest of 4.250% and 3.250%, respectively.
Chase is offering a 30-year fixed rate mortgage loan at an interest of 3.875% with 1.125 points whereas its counterpart refinance loan is available for 4.000% interest with 1.500 points. A 15-year fixed rate mortgage loan is available at 3.250% interest with 0.875 points whereas a 15-year refinance loan comes at 3.375% interest with 1.125 points.
The interest rates mentioned within the article are subjected to change without any guarantee and are up-to-date at the time of publishing of the article. For the latest interest rates, make sure to check the current values.