Average US 30-year mortgage rate edges up to 3.87%

31 Dec 2014 | Author: | No comments yet »

Average US 30-Year Mortgage Rate Edges Up to 3.87%.

Mortgage giant Freddie Mac says the nationwide average for a 30-year fixed rate mortgage increased to 3.87 percent this week, up from 3.83 percent last week. Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that while average fixed mortgage rates move slightly higher this week, the average 30-year fixed-rate mortgage ends the year below four percent. Looking at full-year data, the 30-year fixed-rate average for 2014 was 4.17%, the highest annual average since 2011,” said Frank Nothaft, vice president and chief economist with Freddie Mac. “Despite forecasts for increases in 2014, mortgage rates fell throughout the year, with the benchmark 30-year fixed mortgage rate ending 2014 under the 4% threshold, at 3.99%. Even with average home price appreciation of 5%, housing is more affordable now, with lower monthly payments on a larger loan than one year ago, by virtue of lower mortgage rates,” Bankrate said in its mortgage report. “Yet the housing market is sluggish as would-be homebuyers contend with stagnant incomes.

Mortgage rates have remained low even though the Federal Reserve in October ended its monthly bond purchases, which were meant to keep long-term rates low. Also, the Conference Board reported that confidence among consumers rose in December and the S&P/Case-Shiller® Seasonally-Adjusted National house price index rose 4.6 percent over the 12-months ending in October 2014.” Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. So it goes.” – Kurt Vonnegut, Slaughterhouse-Five Mortgage rates ended the year far better then they began it, really, though, that is skewed by the first few weeks of the year and the last few weeks of the year.

Really, in a year in which the economy firmed, and the Fed pulled in the reins on its quantitative easing stimulus program, it’s sort of amazing that rates fell by nearly 70 basis points.

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