Mortgage Rates Climb Closer to Key 5% Level

MortgagesMortgage rates edged closer to 5 percent – up to 4.94 percent for the 30-year fixed rate – but still down from 5.19 percent a year ago, according to Freddie Mac’s weekly survey of mortgage rates.
Freddie Mac’s chief economist said mortgage rates climbed following bond yields as signs of a generally improving economy persisted.
“Mortgage rates followed bond yields higher once again this week amid signs of an improving economy,” said Frank Nothaft, Freddie Mac chief economist, in a news release. “On the consumer side, retail sales jumped 1.3% in November and consumer sentiment, as measured by the University of Michigan, rose above the market consensus forecast to the highest reading since September. Industrial production also showed large gains in November.”
He said the average rate on 30-year fixed-rate mortgages has stayed under 5 percent for seven weeks, contributing to significant increases in loan refinancing.
“Roughly three out of four mortgage applications were for refinancing during the first two weeks of December, according the Mortgage Bankers Association,” Nothaft said
The 30-year fixed-rate mortgage averaged 4.94 percent for the week ended Thursday, up from last week’s 4.81 percent average. Rates on 15-year fixed-rate mortgages were 4.38 percent, up from 4.32 percent last week – but lower than 4.92 percent a year earlier.
Five-year Treasury-indexed hybrid, adjustable-rate mortgages averaged 4.37 percent, up from last week’s 4.26 percent – down from 5.6 percent a year earlier. One-year, Treasury-indexed ARMs were 4.34 percent, up from 4.24 percent last week – but below 4.94 percent in 2008.

Leave a Reply

Your email address will not be published. Required fields are marked *