Job market improvement spurs lower mortgage rates
Posted on Friday, December 14, 2012 at 4:55:10 PM
In the wake of a number of positive economic reports, fixed mortgage rates continued to hover near all-time lows in the week ending December 13.
During the week, the average rate for a 30-year FRM hit 3.32 percent, down from 3.34 percent, according to a report from Freddie Mac. Meanwhile, 15-year fixed-rate mortgages averaged 2.66 percent, which was a slight decline from 2.67 percent a week earlier.
"Mortgage rates held relatively steady following the November employment report," said Freddie Mac vice president and chief economist Frank Nothaft. "Although 146,000 jobs were created, above the market consensus forecast of 85,000, revisions subtracted 49,000 workers over the September and October period."
As a result of these developments, the unemployment rate improved to 7.7 percent last month, down from 7.9 percent the previous month, according to data from the Department of Labor.
Although the exact rate a consumer receives on their mortgage depend on their personal financial standing, averages are expected to hover at current levels for some time. The Federal Reserve recently announced it would continue injecting money in the bond markets to hold interest rates low until the national unemployment rate falls below 6.5 percent.