December mortgage rates have been favorable for homebuyers and homeowners looking to refinance as mortgage rates have been on a steady declining pace. The latest report from the Mortgage Bankers Association show fixed and adjustable mortgage rates declining.
The 30 year fixed mortgage rate fell 0.26 percent, week over week, averaging 5.18 percent for the week ending December 12. The 15 year fixed mortgage rate fell from an average of 5.08 percent to 4.93 percent and the 1 year adjustable mortgage rate fell 0.13 percent to end the week at an average of 6.63 percent.
The report from the MBA also shows that overall mortgage applications increased, week over week, by 2.9 percent. The refinance index for applications increased 6.5 percent while the purchase index for applications decreased 6.7 percent. However, the overall share of refinance applications increased 76.9 percent, suggesting that lower mortgage rates accompanied by mortgage loan modifications are growing in popularity.
Today started off unexpectedly well for mortgage rates as bond prices were driven lower due to the Federal Reserve cutting key interest rates yesterday. Typically mortgage rates increase as bond prices decreases but with the Federal Reserve reiterating they will be purchasing a large quantity of mortgage backed securities may have eased investors’ minds.
See what the insiders are saying about mortgage rates and the mortgage market in general by visiting Future Planning Financial at www.fpf-direct.com.
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