Home loan rates continued an upward trend this week, depending on data from Freddie Mac and the Mortgage Bankers Association. Home loan rates rose in concert with other significant numbers for instance private sector hiring, sales of existing homes and the consumer confidence index. The increasing interest prices triggered a sharp drop in refinancing, which had been booming with the low mortgage rates. Resource for this article – Mortgage rates rise along with several key economic indicators by Money Blog Newz.
Mortgage rates still lower than last year
The economy may be changing as shown by fixed mortgage rates showing that the fourth quarter had been stronger than the third. A 30-year fixed-rate mortgage was averaged at 4.46 % on December 2 according to Freddie Mac. The week before it was down 4.40 percent. A year ago the fixed-rate mortgage averaged 4.71 %. 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 % as pre-paid interest on the mortgage had been required for getting the average fixed-rate mortgage rate.
Signs of economic recovery
Employment is one of these things optimistic in the economy that is making it so mortgage rates go up. Although the Labor Department reported 9.8 percent as the jobless rate in the latest jobs record, this is still the case. Private sector job creation is at its highest in three years for Nov.. It has also gone up for 10 consecutive months which is good news. Markets interpret that as a optimistic outlook going forward. Prices are still going down for existing home sales although there has been an 11 percent boost. Holiday spending has been really good in Nov. as well. This made the consumer confidence index go up to 54.1 percent.
Mortgage refinancing takes a hit
Seems like like the mortgage refinancing is over with the increasing mortgage rates which homeowners ended up getting $1 trillion out of. It appears like refinancing is something that doesn't interest those who thought they could benefit from a lower mortgage. In the last week, there were 21.6 less applications as outlined by the Mortgage Bankers Association.
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
Mortgage rates still seem to be going down
The economy may be changing as shown by fixed mortgage rates showing that the fourth quarter was stronger than the third. A 30-year fixed-rate mortgage was averaged at 4.46 percent on December 2 according to Freddie Mac. The week before it was down 4.40 percent. The fixed rate mortgage was around 4.71 percent a year ago. 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. The average fixed-rate mortgage rate required that a down-payment be made as pre-paid interest. The down payment was 8 percent of the mortgage.
Signs of economic recovery
The Labor Department reported the jobless rate to be 9.8 percent although the positive economic news that is making mortgage rates go up is employment. Private sector job creation is at its highest in three years for November. It has also gone up for 10 consecutive months which is good news. That is a positive outlook to go forward with for markets. Prices are still going down for existing home sales although there has been an 11 percent increase. In November, the consumer confidence index went up to 54.1 percent too because of holiday spending.
Mortgage refinancing takes a hit
It seems like the mortgage refinancing is over with the rising mortgage rates which homeowners ended up getting $1 trillion out of. It seems like refinancing is something that doesn't interest those who thought they could benefit from a lower mortgage. The Mortgage Bankers Association reports that the volume of mortgage refinance applications dropped 21.6 in the last week.
Articles cited
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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