Mortgage buyer Fannie Mae reported Monday its posted yields for the week ended April 25, 2014, and by the looks of the new report, it appears that yields had barely changed from the week prior. All yields, per usual, are quoted exclusive of servicing fees.
30-year fixed rate mortgage yields, which were at 3.90 percent last week, remained stationary in the previous week, but remained almost a full percentage point higher than the previous year’s reading of 2.99 percent. And while 15-year fixed mortgage yields ticked down three basis points from 2.88 percent to 2.85 percent, this figure remained much higher than the previous year’s level of 2.18 percent. 30-year Federal Housing Administration or Veteran’s Administration-backed home loans had posted yields of 4.54 percent in the week ended April 25, down by just one basis point from 4.55 percent in the week ended April 18. One year ago, 30-year FHA/VA fixed mortgages had a reading of 3.60 percent.
There was more activity in terms of 30-year term adjustable-rate mortgage yields, which lost six basis points from 1.64 percent to 1.58 percent. This put 30-year term ARMs t the same level as they were one year ago, when yields were also at the same 1.58 percent mark.
While this week’s report did not bring about a lot of changes, all eyes should be on what changes could manifest in the aftermath of the Federal Reserve’s monthly policy meeting, which is currently taking place this week. With the Fed expected to stay the course of its monthly tapering of stimulus, the meeting may or may not provide more clarity with regards to other concerns, such as when to raise overnight, short-term interest rates from near-zero levels.