Mortgage rates rise sharply from last week’s record low

Mortgage rates rise sharply from last week’s record low

Mortgage rates rise sharply from last week’s record low
After 30-year fixed mortgage rates dropped to an all-time low, they spent the better part of this week moving sharply higher. The average rate offered on 30-year mortgages being offered increased several times over the course of the week as a result of an oversupply of borrowers overwhelming lenders.

The rate gyration came as 10-year Treasury bond yields, which 30-year mortgage rates track with, briefly hit a record low rate on Monday. However, by mid-week, yields made a dramatic U-turn dragging mortgage rates higher.

Experts suggest that once the stampede to refinance settles down and if bond yields drop again, mortgage rates may drop back down. Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.