Mortgage rates continued an upward trend this week, based on data from Freddie Mac and the Home loan Bankers Association. Rising home loan rates are accompanied by positive numbers from private sector job creation, existing home sales and consumer confidence. As personal property rates rose after a prolonged period of historic lows, home loan refinancing activity dropped off a cliff.
Mortgage rates still lower than last year
The economy may be changing as shown by fixed mortgage rates showing the fourth quarter had been stronger than the third. According to Freddie Mac, there was a 4.40 % rise from the week before Dec. 2 to then as it averaged 4.46 percent for a 30-year fixed-rate mortgage. A year ago the fixed-rate mortgage averaged 4.71 percent. Although there had been also a boost within the last week for rates of 15-year fixed rate mortgages and adjustable rate mortgages, they’re still very low compared to a year ago. Getting the average fixed-rate mortgage rate required a down payment of 8 percent of the mortgage amount charged as pre-paid interest.
Signs the economy might recover happening
The optimistic economic news driving mortgage rates higher includes employment, although the jobless rate rose to 9.8 % within the latest jobs report from the Labor Department. November private sector job creation was the highest in three years and has grown for 10 consecutive months. That is a good outlook to go forward with for markets. Prices are still going down for existing home sales although there has been an 11 percent increase. The consumer confidence index also jumped to 54.1 % in Nov., which showed with a surge in holiday spending.
Hard times with mortgage refinancing
It seems like the mortgage refinancing is over with the increasing mortgage rates which homeowners ended up getting $1 trillion out of. Benefiting from a lower mortgage is something many could do with refinancing. Seems like like those people aren't interested anymore though. The Mortgage Bankers Association reports that the volume of mortgage refinance applications dropped 21.6 within the last week.
Citations
Wall Street Journal
online.wsj.com/article/SB10001424052748703377504575651044040571212.html?mod=WSJ_RealEstate_LeftTopNews
The Chicago 77
thechicago77.com/2010/12/mortgage-rates-climb-on-good-economic-news/
Christian Science Monitor
csmonitor.com/Business/Paper-Economy/2010/1202/Mortgage-rates-rise-driving-down-refi-applications
Lower mortgage rates than last year
The economy may be changing as shown by fixed mortgage rates showing that the fourth quarter was stronger than the third. Freddie Mac reported that the rate on a 30-year fixed-rate mortgage averaged 4.46 percent as of Dec. 2, rising from 4.40 percent the week before. It is up a year ago for a fixed rate mortgage. It was at about 4.71 percent. Rates for 15-year fixed-rate mortgages and adjustable-rate mortgages also rose from last week, but they remain considerably lower than they were at this time last year. A down payment of 8 percent as pre-paid interest on the mortgage was required for getting the average fixed-rate mortgage rate.
Signs that the economy may recover happening
The positive economic news driving mortgage rates higher includes employment, even though the jobless rate rose to 9.8 percent in the latest jobs report from the Labor Department. November private sector job creation was the highest in three years and has grown for 10 consecutive months. Markets are excited about this. It is a positive outlook. A report on pending existing home sales showed an 11 percent increase, even though prices still trend downward. Holiday spending has been really good in November as well. This made the consumer confidence index go up to 54.1 percent.
Hard times with mortgage refinancing
A side effect of rising mortgage rates is the apparent end to a mortgage refinancing window that homeowners took advantage of to the tune of nearly $1 trillion. It seems like refinancing is something that doesn't interest those who thought they could benefit from a lower mortgage. According to the Mortgage Bankers Association, the amount of mortgage refinance applications has gone down in just the last week. There was a 21.6 decrease.
Citations
Wall Street Journal
online.wsj.com/article/SB10001424052748703377504575651044040571212.html?mod=WSJ_RealEstate_LeftTopNews
The Chicago 77
thechicago77.com/2010/12/mortgage-rates-climb-on-good-economic-news/
Christian Science Monitor
csmonitor.com/Business/Paper-Economy/2010/1202/Mortgage-rates-rise-driving-down-refi-applications
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