Mortgage rates continue downward trend

|About: iShares U.S. Home Construct... (ITB)|By:, SA News Editor

30-year fixed-rate mortgage averages 3.49% for the week ending Sept. 5, 2019, its lowest since October 2016, according to the Freddie Mac Primary Mortgage Market Survey.

That's down 9 basis points from 3.58% in the prior week and more than a full percentage point from 4.54% at this time a year ago.

"While economic growth is clearly slowing due to rising manufacturing and trade headwinds, economic fundamentals are still solid for U.S. consumers," said Freddie Chief Economist Sam Khater.

15-year FRM averaged 3.00% vs. 3.06% in the prior week and 3.99% at this time a year ago.

5-year Treasury-indexed hybrid adjustable rate mortgage averaged 3.30% vs. 3.31% in the prior week and 3.93% at this time a year ago.

Shares of most homebuilders and mortgage REITs are gaining; the iShares U.S. Home Construction ETF (BATS:ITB) rises 0.7% and the iShares Mortgage Real Estate Capped ETF (BATS:REM) is up 0.9%.

By name, Toll Brothers (TOL +1.4%), KB Home (KBH +0.9%), William Lyon Homes (WLH +2.7%), Hovnanian (HOV +7.1%), Beazer Homes (BZH +1.4%) are among the gainers in the homebuilder sector.

For mortgage REITs: Annaly Capital Management (NLY +1.9%), AGNC Investment (AGNC +1.7%), Two Harbors Investment (TWO +1.5%),  Orchid Island Capital (ORC +1.7%), Arlington Asset Investment (AI +1.4%), and Anworth Mortgage Asset (ANH +1.6%).

Mortgage REIT ETFs: MORL, REM, MORT

MBS ETFs: DMO, TSI, PGZ

Homebuilder ETFs: XHB, ITB, PKB, NAIL, HOML, HOMZ

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