“Any time you see a blip in rates like this it brings people to the market,” Ryan Shane, a loan officer with Washington-based Sammamish Mortgage, told Mortgage Professional America. “Rates are at historic lows right now.”
Rates fell for the second week in a row, despite an increase to bond yields, according to Bankrate.com.
The benchmark 30-year fixed-rate mortgage dropped to 4.09 percent from 4.12 percent, according to Bankrate.com’s most recent survey.
And that rate was at 4.28 percent just a week ago.
This will be welcome news to originators, who already saw an uptick in applications last week. With rates dropping, more clients may be drawn to the market to get ahead of the eventual hike.
Meanwhile, the 10-year Treasury bond yield rose to 2.28 percent Tuesday from its previous mark of 2.25 percent.
Industry pundits point to Janet Yellen’s most recent comments, indicating that the Fed is preparing to hike its rate.
“The labor market continues to improve, with solid job gains and declining unemployment,” the Fed’s most recent statement, released Wednesday, read.
The Fed didn’t, however, expressly state when it plans to hike the rate.
“The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market,” it said in the statement.
Clients – and originators – are set to cash in on the second straight week of falling rates.