According to PR Newswire via The Street, mortgage rates stayed low for a third week, with the rate for a 30-year fixed mortgage dropping to 4.18 percent.
The typical 15-year fixed mortgage dropped to 3.37 percent, while the longer-term 30-year fixed rate fell to 4.21 percent. The 3-year adjustable rate mortgage slid to 3.16 percent while the 5-year adjustable rate mortgage backed off to 3.27 percent, the article stated.
Uncertainty and lack of confidence in the economy kept mortgage rates low - down to their lowest since 2013. Bank Rate cited a report by the Mortgage Bankers Association when they informed that these low rates perked borrower interest. Mortgage application volume went up 3.8 percent from last week. Refinances and purchase applications saw a rise, but the level of borrowing activity is low, according to the article.
"The biggest reason that rates are falling is we're seeing more evidence that there is a lack of inflationary data," says Brian Rehling, chief income strategist at Wells Fargo Advisors told the people at Bank Rate. "In fact, we're seeing some deflationary data."
"Rates have been this low so long, it has warped our perspective," said Joel Naroff, president of Naroff Economic Advisors. "We think if rates go to 5 percent or even 5.5 percent, it will kill the market. Even if we go up 100 basis points, we're not talking about high rates, by any means."
