Tag Archives: Mortgage Rates

Consumers usually hunt for the best deal -- except when it comes to their mortgages. While 96 percent of American consumers compare prices when shopping, nearly 40 percent obtain just one home loan quote, according to a new survey from LendingTree. The survey also revealed that only 28 percent of borrowers are very confident they received the best possible deal on their current mortgages. Even though 85 percent of consumers use the Web to comparison shop other items, only 21 percent say they shopped online first for mortgage rates.

Borrowing costs on home loans continue to increase, with mortgage rates rising sharply for the past five weeks in a row. New data from Freddie Mac shows that the average rate for a 30-year mortgage jumped 22 basis points over the last seven days to 4.83 percent. The 15-year rate climbed 21 basis points to 4.17 percent. A separate study by Bankrate shows that the average 30-year rate offered by the top 10 banks and thrifts in the top 10 U.S. markets already hit the 5 percent mark this week.

Data released by the Mortgage Bankers Association (MBA) Wednesday shows that consumer demand for mortgages waned last week as interest rates soared to their highest level in nearly seven months. MBA's index of new applications for home purchases plummeted 5.0 percent, breaking a three-week streak of increases, while the refinance index slipped 0.7 percent. MBA says Treasury rates increased last week following news that lower tax rates could be extended for another two years. Mortgage rates also followed higher.

Mortgage interest rates rose again this week, marking the fourth consecutive increase. Freddie Mac says the average rate on a 30-year fixed mortgage has jumped to 4.61 percent, up from 4.46 percent just one week earlier. If such sharp increments continue at this pace, the 30-year rate could rise above where it was a full year ago (4.81 percent) in a matter of mere weeks. For a $200,000 conventional loan, the sudden rise amounts to $50 more in monthly payments than if buyers had locked in rates just two months ago.

Industry data released Wednesday shows that new mortgage applications for the purchase of a home jumped 1.8 percent for the week ending December 3. This is the third weekly increase recorded by the closely watched home purchase index, which has reached its highest level since early May. All market indicators point to a continued rise in mortgage rates and that seems to have prompted some homebuyers to act now. Refinancing, on the other hand, is becoming less attractive.

Americans continue to grapple with uncertainty about the housing market, with 58 percent of U.S. adults expecting recovery to be at least another two years away. Rick Sharga of RealtyTrac and Pete Flint of Trulia are of the same mind as consumers. They peg the housing recovery to begin taking shape between 2013 and 2014. The robo-signing debacle has left most consumers mired in distrust of banks and the government. The industry experts say its effect on REO sales will be minimal, but the impact on consumer confidence could be especially damaging.

The sharp fall in residential property prices in the third quarter means that housing in the U.S. has become even more undervalued. Based on the latest readings of two closely watched industry gauges, the analysts at Capital Economics have concluded that house prices are now 14 to 17 percent undervalued relative to disposable income per capita. A 30-year high in housing affordability hasn't been enough to drive consumer demand, and the research firm says recovery appears to have stalled before it even really began.

They've been sitting at half-century lows for months now, but that trend appears to have snapped as mortgage interest rates across the board rose again this week. One industry report points out that long-term rates have been heading upward for three weeks straight; another says they've now hit a four-month high. Freddie Mac puts the average 30-year rate at 4.46 percent and the 15-year rate at 3.81 percent. Bankrate says the larger jumbo 30-year fixed rate jumped as well, settling at 5.29 percent.

The Mortgage Bankers Association (MBA) reported Wednesday that mortgage applications for refinancing dropped 21.6 percent for the week ending November 26, as interest rates continued to head upward. It marked the third weekly decrease for the refinance index, which has hit its lowest level since June 2010. MBA's measurement of loan applications for home purchases rose 1.1 percent from one week earlier and, in contrast, is at its highest level since the beginning of May 2010.

Freddie Mac reported Wednesday that mortgage rates remained stable this week, rising only slightly from the rates reported last week. A separate study from Bankrate reports rates dipped slightly this week. This week's Freddie survey shows 30-year-fixed-rate-mortgages averaging at 4.40 percent. Bankrate's study puts them at 4.58 percent.