Mortgage rates shot way up in the first three months of the year, then dropped a bit. Last week they mostly stayed put, according to Bankrate’s weekly national survey.
The benchmark 30-year fixed mortgage rate ticked up to 4.30 percent last week, from 4.29 percent the week before.
Bankrate said the jumbo 30-year fixed also inched up, while the 15-year fixed mortgage rate held steady. The 7-year ARM held at 3.68 percent, while the 10-year ARM actually dropped a bit, to 3.85 percent.
If you’ve followed the political news lately, then you know why rates are acting lazy these days.
There was exuberance following the election, with markets anticipating big things from one-party rule in Washington. These included a big infrastructure bill, tax reform and more.
Then came the Republican healthcare bill, which crashed and burned rather than replacing Obamacare.
Suddenly, everyone’s wondering what – if anything – will get passed in the near term.
As Bankrate put it, “Skepticism in financial markets has increased about the ability for meaningful tax reform or infrastructure spending to materialize in the near term, holding bond yields and mortgage rates in check.”
Mortgage rates are closely related to yields on long-term government bonds. But the continued trend of solid economic data could begin to offset this and push mortgage rates higher in the week ahead.