Mortgage rates climber higher this week after hitting record lows in the previous survey, according to mortgage financier Freddie Mac.
“Following an upbeat employment report, long-term bond yields rose slightly and fixed mortgage rates followed,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.
“The economy shed only 11,000 jobs in November, far fewer than the market consensus forecast, and the unemployment rate unexpectedly fell to 10 percent. In addition, revisions added 159,000 jobs to September and October.”
Good economic news tends to push interest rates higher, while the opposite is also true (how mortgage rates are determined).
The popular 30-year fixed-rate mortgage averaged 4.81 percent for the week ending December 10, up from 4.71 percent a week ago, but below the 5.47 percent average seen a year ago.
The 15-year fixed increased to 4.32 percent from 4.27 percent, but remains well below the 5.20 percent seen this time last year.
The five-year adjustable-rate mortgage climbed to 4.26 percent from 4.19 percent, while the one-year ARM slipped a single basis point to 4.24 point.
A year ago, the five-year averaged 5.82 percent and the one-year stood at 5.09 percent.
The mortgage rates above are good for conforming loan amounts at 80 percent loan-to-value; they don’t include pricing adjustments.
Jumbo loans continue to price a percentage point or more higher.
(photo: woinary)
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