Contact Palm Beach Business.com by phone: 561 450-8258. By email.

Poor economic data sends mortgage rates south

By Palm Beach Business.com

DELRAY BEACH — What goes up, seemingly must come down. That seems to the rule this year when it comes to mortgage rates.

Freddie Mac’s Primary Mortgage Market Survey found the 30-year fixed-rate mortgage dropping to 3.66 percent with 0.7 point from last week’s 3.71 percent.  Rates had moved up last week, a rare occurrence so far this year.

Bankrate’s national survey also found rates dropping. The 30-year came in at 3.89 percent with 0.43 point, a record low, down from last week’s 3.91 percent.  It’s the fourth consecutive week that the 30-year has declined.

Disappointing economic news was the catalyst behind the drop.

"Treasury bond yields eased somewhat this week on some worsening economic indicators bringing mortgage rates back into record low territory,” Freddie Mac Chief Economist Frank Nothaft said. “Industrial production fell in two of the last three months ending in May, and below the expected market consensus forecast. In addition, consumer sentiment fell in June to its lowest level this year, according to the University of Michigan survey.”

Both surveys found the 15-year fixed-rate mortgage dropping,  to 2.95 percent with 0.6 point from 2.98 percent a week ago, according to Freddie Mac, and to 3.16 percent with 0.35 point from 3.17 percent a week ago, according to Bankrate.