Mortgage Rates Jump Higher
Mortgage rates climbed higher for a second straight week as the economy showed signs of improvement, mortgage financier Freddie Mac said today.
The popular 30-year fixed averaged 4.94 percent during the week ending December 17, up from 4.81 percent last week, but below the 5.19 percent seen a year ago.
The 15-year fixed averaged 4.38 percent, up from 4.32 percent a week earlier, but much better than the 4.92 percent average seen last year.
Adjustable-rate mortgages also worsened, with the five-year climbing to 4.37 percent from 4.26 percent and the one-year averaging 4.34 percent, up from 4.24 percent.
A year ago, the five-year averaged 5.60 percent and the one-year stood at 4.94 percent.
“Mortgage rates followed bond yields higher once again this week amid signs of an improving economy,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“On the consumer side, retail sales jumped 1.3 percent in November and consumer sentiment, as measured by the University of Michigan, rose above the market consensus forecast to the highest reading since September. Industrial production also showed large gains in November.
The good news is the 30-year fixed has stayed below five percent for the past seven weeks, boosting refinancing activity.
The interest rates above are good for conforming loan amounts with an 80 percent or greater down payment.
Mortgage pricing adjustments may increase (or decrease) the actual rate you receive, and jumbo loans continue to price a percentage point or more higher.
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