Mortgage Daily Logo
mortgage news from industry experts

Fixed Mortgage Rates Rise, But Could Retreat

Interest rates on home loans moved up this past week but could slide lower in the next report.

In the week ended Dec. 31, thirty-year fixed rates averaged 3.87 percent, according to Freddie Mac’s Primary Mortgage Market Survey.

The 30 year increased from the previous week, when it averaged 3.83 percent. But the average fell from 4.53 percent in the same week last year.

“The Conference Board reported that confidence among consumers rose in December,” Freddie Mac Chief Economist Frank Nothaft stated in the report, “and the S&P/Case-Shiller Seasonally-Adjusted National house price index rose 4.6 percent over the 12-months ending in October 2014.”

For the month of November, conforming 30-year fixed rates averaged 4.24 percent, down 8 BPS from October, the Federal Housing Finance Agency said.

Mortgage Daily’s analysis of Treasury market activity indicates that fixed rates could be around 4 basis points better in Freddie’s next survey.

But a majority of panelists surveyed by Bankrate.com for the week Dec. 31 to Jan. 7 predicted that mortgage rates won’t change over the next week. Another third forecasted that rates will rise at least 3 BPS, and just 9 percent projected a decline.

Interest rates on jumbo loans were 12 BPS higher than on conforming loans in the U.S. Mortgage Market Index report from LoanSifter/Optimal Blue and Mortgage Daily for the week ended Dec. 26. The jumbo-conforming spread was wider than 7 BPS the prior week.

Fifteen-year fixed rates averaged 3.15 percent in Freddie’s survey, 5 BPS worse than in the prior report. The spread between 15- and 30-year rates narrowed to 72 BPS from 73 BPS in the week ended Dec. 24.

Freddie reported that five-year, Treasury-indexed, hybrid, adjustable-rate mortgages averaged 3.01 percent, no different than seven days prior.

One-year Treasury-indexed ARMs averaged 2.40 percent, a basis point worse than a week earlier but down 16 BPS from the week ended Jan. 2, 2014.

The index for the one-year ARM, the yield on the one-year Treasury note, closed Wednesday at 0.25 percent, a basis point less than a week earlier.

A one-basis-point increase from seven days earlier was recorded for the six-month London Interbank Offered Rate, which Bankrate.com reported at 0.36 percent as of Wednesday.

The latest Mortgage Market Index report had ARMs accounting for 9.8 percent of all activity. ARM share fell from 10.9 percent one week prior.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION