Mortgage rates have been increasing three weeks running based on data from the Mortgage Bankers Association and Freddie Mac. Home loan rates rose in concert with other significant amounts for instance private sector hiring, sales of existing homes and the consumer confidence index. The rising interest prices 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. As outlined by Freddie Mac, there had been a 4.40 percent rise from the week before Dec. 2 to then as it averaged 4.46 % 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. A down payment of 8 percent as pre-paid interest on the mortgage had been required for getting the average fixed-rate mortgage rate.
Signs that the economy may recover happening
The Labor Department reported the jobless rate to be 9.8 percent although the optimistic economic news that is making mortgage rates go up is employment. There has been a 10 consecutive month growth within the private sector job creation which is at its highest in three years. 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. Holiday spending has been really good in November as well. This made the consumer confidence index go up to 54.1 percent.
Taking a hit 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. Many people who might have thought they could benefit from record-low mortgage rates appear to be no longer interested in refinancing. The Mortgage Bankers Association reports the volume of mortgage refinance applications dropped 21.6 in the last week.
Information from
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 fourth quarter is proving to be stronger than the third when it comes to the economy. Economic data is showing this with fixed mortgage rates. 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. Although there was also an increase in the last week for rates of 15-year fixed rate mortgages and adjustable rate mortgages, they are still very low compared to a year ago. A down payment of 8 percent as pre-paid interest on the mortgage was required for getting the average fixed-rate mortgage rate.
Recovery signs in the economy
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 interpret that as a positive outlook going forward. A report on pending existing home sales showed an 11 percent increase, even though prices still trend downward. The consumer confidence index also jumped to 54.1 percent in November, which showed with a surge in holiday spending.
Hurting bad with mortgage refinancing
It seems like the mortgage refinancing is over with the rising mortgage rates which homeowners ended up getting $1 trillion out of. Many people who may have thought they could benefit from record-low mortgage rates appear to be no longer interested in refinancing. In the last week, there were 21.6 less applications according to the Mortgage Bankers Association.
Information from
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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