Mortgage Rates Inch Up After Extended Decline

The 30-year mortgage rate rose 2 basis points over the week to 3.91 percent. However, Freddie Mac’s Primary Mortgage Market Survey® (PMMS®) was conducted before investors drove Treasury yields sharply lower in a reaction to the surprisingly weak CPI release. If that drop in yields sticks, mortgage rates are likely to follow in next week’s survey.

Mortgage Rates Edge Down

The 30-year mortgage rate fell 3 basis points this week to 4.02 percent. However, this week’s survey closed prior to Wednesday’s flight to quality. The delayed impact of the associated decline in Treasury yields may push mortgage rates lower in next week’s survey.

Mortgage Rates Tumble Below 4 Percent

The 30-year mortgage rate fell 11 basis points this week to 3.97 percent, dropping below the psychologically-important 4 percent level for the first time since November. Weak economic data and growing international tensions are driving investors out of riskier sectors and into Treasury securities. This shift in investment sentiment has propelled rates lower.