Mortgage rates dropped significantly this past week in the Freddie Mac Weekly Survey, as day-to-day the rates showed continued volatility. The 30 Year Fixed Rate Mortgage was at 5.30% in today’s Freddie Mac survey results and the 15 Year Fixed Rate Mortgage was at 4.45%.
Last month the Federal Reserve raised the Fed Funds Rate target by 0.75% in addition to starting to reduce the amount of mortgage and treasury securities on its balance sheet, know as tapering. Based upon most recent data available, the Fed’s approach to tapering has been very weak as the balance sheet was barely reduced in the month of June and they continue to pump money into banks at near record levels in overnight operations. Current indications point to at least a half-point fed funds rate increase in July, with recent suggestions that a full point increase is very possible. Mortgage rates are likely to remain volatile in this environment as a new normal emerges in the last half of the year. It’s still difficult to predict what may happen to rates if the Fed raises rates a full point in July and actually starts to taper in earnest.
Freddie Mac’s Weekly Survey was released this morning with its most recent assessment of the mortgage rate landscape. See the details of their survey below.
(dynamic chart with current info)