The seasonally adjusted sub-index of refinancing applications slid 2%, while the index of loan requests for home purchases, a key indicator of home sales, rose 0.1% and is 18% higher year-on-year.
A year ago, the average 30-year mortgage rate was 4.01 percent, while the rate for 15-year loans was 3.20 percent.
Also increasing, the 15-year FRM averaged 3.20%, up from last week when it averaged 3.09%.
But Keith Gumbinger of HSH.com, a publisher of mortgage information based in Riverdale, said that an increase in December is likely to have less effect on mortgage rates than the signals the Fed will give on whether rates will rise in 2016.
The larger jumbo 30-year fixed lept higher again this week to 3.99 percent. The low interest rates and next to zero down payment schemes across the country have enabled the people from low income groups and middle income groups to get easy mortgage sanctions.
FHA mortgage insurance premiums (MIP) were lowered earlier this year to help with home affordability. Over the past 52 weeks, the 30-year fixed has averaged 3.98%. Keep this in mind when mortgage analysts make additional predictions for 2016, as they inevitably will. You have to take these forward-looking statements and forecasts with a grain of salt. Only 10% expect mortgage rates to decline over the next seven days.
Quote Attributed to Sean Becketti, chief economist, Freddie Mac. The report says that previous year sellers cited the fear of rising home prices and interest rates as a prime motivator for selling their home and buying another.
He added,”There is only one more employment report before the December FOMC meeting, which will have major implications on whether we see a rate hike in 2015″.
No one can predict the future of mortgage rates with complete accuracy.
With that being said, the general consensus among industry watchers is that mortgage rates will rise gradually between now and the end of 2015, followed by a slow-but-steady rise in 2016. Last year with the surge of jobs and the substantial increase in the employment sector this year real estate property is growing from strength to strength.