Freddie Mac noted this week’s average for the 15-year fixed loan at 2.88%, up from 2.84% one week earlier. The start rates on Ventura County variable-interest loans were mixed.
The increasing economic strength causes a decrease in demand for the safe securities issued by the U.S. Treasury. The decrease in demand pushes up their yield, and many other rates, including those on mortgages, tend to follow.
The yield on the benchmark 10-year Treasury note closed at 1.8% Wednesday hitting bottom at 1.4% on July 24. The average 30-year fixed mortgage rate, as calculated by Freddie Mac, hit an all-time low of 3.49% in the same week.
Rising rates in Ventura County could curb refinancing as mortgage rates gradually descended from double-digit levels in the 1980s.
The Ventura Countymortgage arms of large banks and independent lenders collect significant profits when they sell loans made at the low rates.
Source: Money & Co, Scott Reckard
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