The 30-year fixed-rate mortgage averaged 3.98 percent over the last seven days, reversing its previous three-week trend of setting all-time record lows, according to Freddie Mac.
Housing market data showed a somewhat positive trend for the end of 2011, helping solidify, at least for now, a bottom for the longest-term rate.
Meanwhile, the Market Composite Index, a measure of mortgage loan application volume, decreased 5 percent last week on a seasonally adjusted basis from one week earlier, said the Mortgage Bankers Association.
The refinance share of mortgage activity decreased to 81.3 percent of total applications, from 82.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.3 percent, from 5.6 percent of total applications from the previous week.
Among refinance borrowers n December 2011, 56.6 percent of applications were for fixed-rate 30-year loans, 24.3 percent for 15-year fixed loans, and 5.3 percent for ARMs.
“Fixed mortgage rates ticked up this week as the housing market ended 2011 on a high note,” said Frank Nothaft, vice president and chief economist, Freddie Mac. “New construction of one-family homes rose 4.4 percent in December to an annualized rate of 470,000, the most since April 2010. Existing home sales increased 5.0 percent at the end of the year to 4.61 million houses, the largest amount since May 2010. Furthermore, pending home sales in November and December averaged the highest reading since the March and April 2010 period.”
Here is Freddie Mac’s overview of mortgage rates for the past seven days:
- 30-year fixed-rate mortgage averaged 3.98 percent, with an average 0.7 point for the week ending January 26, 2012, up from last week when it averaged 3.88 percent. Last year at this time, the 30-year FRM averaged 4.80 percent;
- 15-year averaged 3.24 percent, with an average 0.8 point, up from last week when it averaged 3.17 percent. A year ago at this time, the 15-year FRM averaged 4.09 percent;
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.85 percent, with an average 0.7 point, up from last week when it averaged 2.82 percent. A year ago, the 5-year ARM averaged 3.70 percent;
- 1-year Treasury-indexed ARM averaged 2.74 percent, with an average 0.6 point, matching last week when it averaged 2.74 percent. At this time last year, the 1-year ARM averaged 3.26 percent.
