There hasn’t been much mortgage activity since our last report, as rates have yet to move away from the .25% range. According to Janet Yellen, likely successor to the current Fed chairman,“We shouldn’t see much of a change to mortgage rates for the rest of 2013”. After all the instability in mortgage rates we saw during July and August, this news surely brings a sense of security to many American homeowners.
Freddie Mac confirms Yellen’s statement by reporting that 30 year fixed mortgage rates are actually expected to remain at historical lows! The following are the average rates released by Freddie Mac:
- 1 Year Treasury- indexed ARM averaged 2.61 percent this week with an average .4 point, indicating no change since last week. This is compared to a year ago when the 1-year ARM averaged 2.56 percent.
- 5-year-Treasury- indexed hybrid adjustable-rate mortgage (ARM) averaged 2.95 percent this week with an average 0.5 point, a little lower from last week when it averaged 3.01 percent. Last year, the 5 year ARM averaged 2.74 percent
- 15 year FRM averaged 3.27 percent with an average 0.7 point, down from last week when it averaged 3.35 percent. A year ago, the 15 year FRM averaged 2.63 percent.
- 30-year-fixed rate mortgage averaged 4.22 percent with an average 0.7 point for the week ending November 21, 201, down from last week when it averaged 4.35 percent. A year ago, the 30 year FRM averaged 3.31 percent.
Janet Yellen concluded by saying “The news that would impact the rates most in December will be the employment report that will be released on Dec 6th, 2013. A better than expected employment report will result in higher mortgage rates and vice versa.”
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