It has been a happening day in the mortgage market with interest rates falling to their lowest level in the past two weeks. The drop is influenced by a basket of reasons starting with the steady improvement in the treasuries and slower global stock market amid lower earnings hurting the Wall Street. The U.S. dollar was weak today and a slight improvement in crude oil accompanied with the improvement in gold prices built the momentum.
The Wall Street lost its momentum because of bigger players including IBM and United Technologies weighing on the overall market. At the same time, the current earnings session had witnessed improvement in earnings without revenue growth, which might not be the perfect indicator for growth. At 1:00 pm today, S&P 500 was standing at a loss of 9.43 points accompanied with 11.41 points’ drop at Nasdaq composite and 202.47 points’ drop for the Dow Jones industrial average.
While talking about the federal interest rate hike, the analysts are placing their bets on the upcoming feds meet scheduled for the next week. Another positive sign hinting towards an improving economy is the fact that the Treasury Department fetched the highest interest rates for one-year bills worth $25 billion at 0.330% since June 2010. It was much better than the last month’s one-year bill auction, which fetched an interest rate of 0.290%. Further, the U.S. Federal fund rates were up to 0.14% on Monday against 0.13% rates of Friday, according to the U.S. Federal Reserve data.
According to the latest Mortgage rate survey from Mortgagenewsdaily.com, a 30-year fixed rate mortgage for new home is available at an interest of 4.06% against yesterday’s interest of 4.08%. At the same time, a 15-year fixed rate mortgage was offered at an interest rate of 3.24% against 3.26% interest on Monday.
Bank of America is offering a 30-year fixed rate loan for a new house at an interest of 4.00% whereas its smaller 15-year counterpart is available for 3.250% interest. A 30-year refinance loan from the leading American bank is available for 4.250%. Bank of America is quoting an interest of 3.250% for a 15-year fixed rate refinance loan.
Chase has an asking rate of 4.000% for a 30-year fixed rate loan with 0.875 points and its 15-year fixed rate loan for a new home is available for 3.250% interest with 0.875 points. Another major bank, Wells Fargo, has an interest rate of 4.250% for a 30-year fixed rate mortgage loan.
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.