Real estate daily market update: March 15, 2018

Power up your Indie Brokerage
Don't miss our Indie Broker Summit SF, July 17, 2018

 We’ll add more market news briefs throughout the day. Check back to read the latest.

Most recent market news

Thursday, March 15

Freddie Mac Primary Mortgage Market Survey

  • The average rate on a 30-year fixed rate mortgage fell two basis points to 4.44 percent.
  • The average rate on a 15-year fixed rate mortgage fell four basis points to 3.90 percent.
  • The average rate on a 5-year adjustable rate mortgage increased four basis points, averaging 3.67 percent.

“Tuesday’s Consumer Price Index report indicated inflation may be cooling down; headline consumer price inflation was 2.2% year-over-year in February,” said Len Kiefer, Freddie Mac’s deputy chief economist.

“Following this news, the 10-year Treasury fell slightly. Mortgage rates followed Treasury’s and ended a nine-week surge. The U.S. weekly average 30-year fixed mortgage rate fell 2 basis points to 4.44% in this week’s survey, its first decline this year.”

Zillow Mortgage Rate Ticker

  • The 30-year fixed mortgage rate on Zillow Mortgages is currently 4.23 percent, down six basis points from this time last week. The 30-year fixed mortgage rate hovered around 4.28 percent for most of the past week before falling to the current rate on Tuesday.
  • The rate for a 15-year fixed home loan is currently 3.64 percent, and the rate for a 5-1 adjustable-rate mortgage (ARM) is 3.58 percent.
  • The rate for a jumbo 30-year fixed loan is 4.37 percent.

Current rates for 30-year fixed mortgages by state. Source: Zillow

“After holding steady for much of the week — even through Friday’s exceptionally strong jobs report — rates fell for the first time this year after inflation data reported Tuesday were weaker than anticipated, and news of the firing of Secretary of State Rex Tillerson prompted some financial market flight to safety,” said Aaron Terrazas, senior economist at Zillow.

“Beyond the continued risk of geopolitical developments, the Fed is expected to raise short-term interest rates at next Wednesday’s FOMC meeting. The press conference following the meeting will be Chairman Powell’s first since taking over in mid-February and markets will study the FOMC’s quarterly forecasts for signals about the committee’s unspoken monetary policy leanings.”

News from earlier this week

Wednesday, March 14

Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey

  • The Market Composite Index, a measure of mortgage loan application volume, increased 0.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2 percent compared with the previous week. The Refinance Index decreased 2 percent from the previous week.
  • The seasonally adjusted Purchase Index increased 3 percent from one week earlier. The unadjusted Purchase Index increased 5 percent compared with the previous week and was 3 percent higher than the same week one year ago.
  • The refinance share of mortgage activity decreased to its lowest level since September 2008, 40.1 percent of total applications, from 41.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.1 percent of total applications.
  • The FHA share of total applications increased to 10.4 percent from 10.1 percent the week prior. The VA share of total applications increased to 10.3 percent from 9.9 percent the week prior. The USDA share of total applications remained unchanged at 0.9 percent from the week prior.
  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to its highest level since January 2014, 4.69 percent, from 4.65 percent, with points decreasing to 0.45 from 0.58 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) decreased to 4.55 percent from 4.56 percent, with points decreasing to 0.33 from 0.52 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to its highest level since July 2011, 4.73 percent, from 4.68 percent, with points decreasing to 0.76 from 0.79 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.07 percent from 4.11 percent, with points decreasing to 0.46 from 0.64 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs increased to its highest level since February 2011, 3.93 percent, from 3.81 percent, with points decreasing to 0.45 from 0.46 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

Email Inman