Mortgage rates for U.S. loans dipped this week after rates have been on the rise for more than a month, government-backed mortgager Freddie Mac announced on Thursday.
Rates for 30-year-fixed-rate mortgages fell slightly from last week’s 4.83 percent to 4.81 percent this week, while 15-year rates also sank 0.02 percent from 4.17 percent last week to 4.15 percent.
“Mortgage rates were little changed this week following significant increases over the prior several weeks,” Frank Nothaft, chief economist and vice president of Freddie Mac, said in a statement.
Despite the month-long rise in mortgage rates, lenders were still doling out home loans at relatively low rates, experts said.
“Rates remain low, however, despite the recent rise and are still well below where they began the year,” Nothaft noted.
Despite the growing and now steadying of mortgage rates, home sales are up and are bound to be on an upward trend.
According to the National Association of Realtors (NAR), existing-home sales were up 5.6 percent for November, continuing an improvement in home sales since July.
“Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” NAR Chief Economist Lawrence Yun said in a statement.
Yun credited rising affordability with the gains in home sales.
“The relationship recently between mortgage interest rates, home prices, and family income has been the most favorable on record for buying a home since we started measuring in 1970,” he added.
However, mortgage applications and refinancing requests have lessened as rates remained the highest in months.
According to the Mortgage Bankers Association (MBA), refinancing applications fell by nearly a quarter (24.6 percent) for the week ending Dec. 17, while the total number of mortgage applications fell by nearly 20 percent for the same time period.
“Refinance application volume dropped sharply this week as mortgage rates held near six month highs,” Michael Fratantoni, vice president of research and economics at MBA, said in a statement.
“Purchase applications fell for a second week, with the level of applications little changed over the past month.”
Rates for 30-year-fixed-rate mortgages fell slightly from last week’s 4.83 percent to 4.81 percent this week, while 15-year rates also sank 0.02 percent from 4.17 percent last week to 4.15 percent.
“Mortgage rates were little changed this week following significant increases over the prior several weeks,” Frank Nothaft, chief economist and vice president of Freddie Mac, said in a statement.
Despite the month-long rise in mortgage rates, lenders were still doling out home loans at relatively low rates, experts said.
“Rates remain low, however, despite the recent rise and are still well below where they began the year,” Nothaft noted.
Despite the growing and now steadying of mortgage rates, home sales are up and are bound to be on an upward trend.
According to the National Association of Realtors (NAR), existing-home sales were up 5.6 percent for November, continuing an improvement in home sales since July.
“Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” NAR Chief Economist Lawrence Yun said in a statement.
Yun credited rising affordability with the gains in home sales.
“The relationship recently between mortgage interest rates, home prices, and family income has been the most favorable on record for buying a home since we started measuring in 1970,” he added.
However, mortgage applications and refinancing requests have lessened as rates remained the highest in months.
According to the Mortgage Bankers Association (MBA), refinancing applications fell by nearly a quarter (24.6 percent) for the week ending Dec. 17, while the total number of mortgage applications fell by nearly 20 percent for the same time period.
“Refinance application volume dropped sharply this week as mortgage rates held near six month highs,” Michael Fratantoni, vice president of research and economics at MBA, said in a statement.
“Purchase applications fell for a second week, with the level of applications little changed over the past month.”
Friends Read Free