Mortgage rates up slightly
Posted on Thursday, December 10, 2015 at 10:28:34 AM
November was a solid month for job growth in America, and mortgage rates responded predictably to the Bureau of Labor Statistics' employment report. According to Freddie Mac's Primary Mortgage Market Survey, the average 30-year fixed rate mortgage nudged slightly higher this week to 3.95 percent with an average 0.6 point.
"The economy added 211,000 new jobs in November exceeding analysts' expectations, and the prior two months were revised higher as well. This momentum is likely to cement a decision by the Fed to begin raising interest rates this month," said Sean Becketti, Freddie Mac's chief economist. "Following the release of the employment report, Treasuries rose 7 basis points and in response the 30-year mortgage rate ticked up two basis points to 3.95 percent."
Last week the 30-year FRM averaged 3.93 percent, the same position it held one year ago. The 15-year FRM increased as well, from 3.16 percent last week to 3.19 percent in the week ending Dec. 10.
Mortgage applications followed rates with a similarly small bump. The Mortgage Bankers Association reported that applications for residential financing increased 1.2 percent on the Market Composite Index, with the share of FHA loans in total applications climbing as well, from 13.2 percent to 14 percent.