Mortgage rates continued an upward trend this week, depending on data from Freddie Mac and the Mortgage Bankers Association. Other key signals such as job creation, home sales and consumer spending rose along with home loan rates. The rising interest rates triggered a sharp drop in refinancing, which had been booming with the low mortgage rates. Article resource – Mortgage rates rise along with several key economic indicators by Money Blog Newz.
Lower mortgage rates than last year
Fixed mortgage rates rose again this week as economic data showed the economy might turn out being stronger in the fourth quarter than the third. A 30-year fixed-rate mortgage was averaged at 4.46 % on December 2 as outlined by Freddie Mac. The week before it had been down 4.40 percent. It is up a year ago for a fixed rate mortgage. It had been 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. Getting the average fixed-rate mortgage rate required a down payment of 8 percent of the mortgage amount charged as pre-paid interest.
Recovery signs in the economy
The positive economic news driving mortgage rates higher includes employment, despite the fact that the jobless rate rose to 9.8 percent in the latest jobs report from the Labor Department. There has been a 10 consecutive month growth in the private sector job creation which is at its highest in three years. Markets are excited about this. It is a optimistic outlook. A report on pending existing home sales showed an 11 % boost, although prices still trend downward. Holiday spending has been really good in Nov. as well. This made the consumer confidence index go up to 54.1 percent.
Taking a hit with mortgage refinancing
About $1 trillion had been lost because of mortgage refinancing by homeowners. The mortgage rates rising has stopped people from doing this. 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 the volume of mortgage refinance applications dropped 21.6 within 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
Mortgage rates still seem to be going down
Fixed mortgage rates rose again this week as economic data showed the economy may turn out being stronger in the fourth quarter than the third. According to Freddie Mac, there was a 4.40 percent rise from the week before Dec. 2 to then as it averaged 4.46 percent for a 30-year fixed-rate mortgage. 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. Getting the average fixed-rate mortgage rate required a down payment of 8 percent of the mortgage amount charged as pre-paid interest.
Recovery signs in the economy
Employment is one of these things positive in the economy that is making it so mortgage rates go up. Even though the Labor Department reported 9.8 percent as the jobless rate in the latest jobs report, this is still the case. 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. In November, the consumer confidence index went up to 54.1 percent too because of holiday spending.
Taking a hit with mortgage refinancing
About $1 trillion was lost because of mortgage refinancing by homeowners. The mortgage rates rising has stopped people from doing this. 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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