Sunday, December 6, 2015

Mortgage rates fall for the third week in a row

Mortgage rates wandered down for the third week in a row, according to the latest data released Thursday by Freddie Mac.
The 30-year fixed-rate average slipped to 3.93 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.95 percent a week ago and 3.89 percent a year ago. After gaining 22 basis points — a basis point is 0.01 percentage point — in two weeks in early November, the 30-year fixed-rate average has steadily declined the past three weeks but has given back only five basis points.
The 15-year fixed-rate average ticked down to 3.16 percent with an average 0.5 point. It was 3.18 percent a week ago and 3.1 percent a year ago.
Hybrid adjustable rate mortgages were mixed. The five-year ARM average dropped to 2.99 percent this week with an average 0.5 point. It was 3.01 percent a week ago and 2.94 percent a year ago. The five-year ARM average has stayed below the 3 percent mark for 22 of the past 24 weeks.
The one-year ARM average rose to 2.61 percent with an average 0.3 point. It was 2.59 percent a week ago.
“Treasury yields ticked down 3 basis points after weak manufacturing data,” Sean Becketti, Freddie Mac chief economist, said in a statement.
“After the survey [of mortgage lenders by Freddie Mac] closed, [Federal Reserve Chair Janet] Yellen implied that the economy is ready for a rate hike in December. However, all eyes remain on this Friday’s jobs report, the last significant release prior to the [Federal Open Market Committee’s] meeting.”
Meanwhile, mortgage applications were flat, according to the latest data from the Mortgage Bankers Association.
The market composite index — a measure of total loan application volume – slipped 0.2 percent from the previous week. The refinance index dropped 6 percent, while the purchase index rose 8 percent.
The refinance share of mortgage activity accounted for 56.6 percent of all applications.

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