U.S. Mortgage Rates Rise Again, Forth Week in a Row
According to Freddie Mac's (OTC:FMCC) latest Primary Mortgage Market Survey
(PMMS), both fixed- and short-term mortgage rates rose this week. This was the fourth week in a row where fixed-rate mortgage rates were up.
Freddie Mac's chief economist Frank Nothaft said, "After Europe made strides in its debt situation, investors left the security of U.S. Treasury debt causing bond yields to rise and mortgage rates along with them. Interest rates for 30-year fixed mortgages are now almost a half percentage point higher than the record low set in mid-October, which for a $200,000 conventional loan amounts to $50 more in monthly payments."
Freddie Mac reported that the 30-year fixed-rate mortgage (FRM) averaged 4.61 percent with an average 0.7 point for the week ending December 9, 2010, up from last week when it averaged 4.46 percent. Last year at this time, the 30-year FRM averaged 4.81 percent.
The 15-year FRM this week averaged 3.96 percent with an average 0.7 point, up from last week when it averaged 3.81 percent. A year ago at this time, the 15-year FRM averaged 4.32 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.60 percent this week, with an average 0.6 point, up from last week when it averaged 3.49 percent. A year ago, the 5-year ARM averaged 4.26 percent.
The 1-year Treasury-indexed ARM averaged 3.27 percent this week with an average 0.6 point, up from last week when it averaged 3.25 percent. At this time last year, the 1-year ARM averaged 4.24 percent.
Nothaft further commented, "Housing demand appears to be picking up recently. Existing pending sales jumped 10.4 percent in October to the strongest pace since April, according to the National Association of Realtors. More recently, mortgage applications for home purchases rose for the three consecutive weeks ending on December 3rd, representing a 17.7 percent increase and the strongest pace since the week of May 7th, based on figures released by the Mortgage Bankers Association."
Freddie Mac defines its regions as follows:Northeast:
NY, NJ, PA, DE, MD, DC, VA, WV, ME, NH, VT, MA, RI, CTSoutheast:
NC, SC, TN, KY, GA, AL, FL, MS, PR, VINorth Central:
OH, IN, IL, MI, WI, MN, IA, ND, SDSouthwest:
TX, LA, NM, OK, AR, MO, KS, CO, NE, WYWest:
CA, AZ, NV, OR, WA, UT, ID, MT, HI, AK, GU