The 30-year fixed-rate mortgage (FRM) averaged 4.94 percent for the week, according to Freddie Mac. That percentage was up from last week’s 4.81 percent but still below 5.19 percent last year at this time.
The 15-year FRM this week rose to 4.38 percent in comparison with 4.32 percent the previous week and 4.92 percent a year ago.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.37 percent versus 4.26 percent last week and 5.60 percent last year.
As for the one-year Treasury-indexed ARM, the average rate was 4.34 percent this week. Last week it was 4.24 percent and last year, 4.94 percent. Observed Freddie Mac Chief Economist Frank Nothaft:
“Mortgage rates followed bond yields higher once again this week amid signs of an improving economy. On the consumer side, retail sales jumped 1.3 percent in November and consumer sentiment, as measured by the University of Michigan, rose above the market consensus forecast to the highest reading since September. Industrial production also showed large gains in November.
“Interest rates on 30-year fixed-rate mortgages have remained below five percent over the past seven weeks and are contributing to a wave of refinance activity. Roughly three out of four mortgage applications were for refinancing during the first two weeks of December, according the Mortgage Bankers Association.
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