Long-term
mortgage rates saw a jump this week following better-than-expected
economic reports.
Freddie
Mac released
Thursday the results of its Primary Mortgage Market Survey, putting
the average 30-year fixed-rate mortgage (FRM) at a rate of 4.46
percent (0.5 point) for the week ending December 5, up from 4.29
percent last week. A year ago, the 30-year FRM averaged
3.34 percent.
The
15-year FRM this week averaged 3.47 percent (0.4 point), up
from 3.30 percent previously.
Reports
were mixed for adjustable rates. The 5-year Treasury-indexed hybrid
adjustable-rate mortgage (ARM) averaged 2.99 percent (0.4 point) this
week, up from 2.94 percent. The 1-year ARM, meanwhile, averaged
2.59 percent (0.4 point), a slight drop from 2.60 percent.
Frank
Nothaft, VP and chief economist for Freddie Mac, pinned the increases
on encouraging growth in private jobs and new
home sales.
“Private
companies added 215,000 new jobs in November according to
the ADP employment report, well above the consensus. In
addition, revisions added 54,000 jobs in the prior month,” Nothaft
explained. “Lastly, new home sales rose 25 percent in the month of
October to a seasonally adjusted 444,000 annual pace, though this
followed a weaker than expected September report and downward
revisions over the summer months.”
Bankrate.com’s weekly
national survey showed increases all around. According to the site,
the 30-year fixed average rose to 4.55 percent this week, a gain of
11 basis points, while the 15-year fixed average increased 15 points
to 3.62 percent.
The
5/1 ARM was up more modestly, rising 4 basis points to 3.33
percent.
For more information contact
Jerry Gusman
The Gusman Group
(888) 213-4208
jerryggroup@aol.com
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