By Mike Colpitts
Rates on a conventional 30-year fixed rate mortgage moved higher for the first time in three weeks, as rates on other loan products for home financing moved lower showing mixed moves for the week, according to Freddie Mac. The rate on the long term mortgage rose to 4.74%, an uptick of just .03 from last week.
However, mortgage rates on a 15-year fixed rate loan dropped slightly to 4.05% from 4.08% the previous week with 0.8 point for loan origination costs. The 30-year fixed rate hit its all all-time record low last October averaging 4.17% and hasn’t been close to being as low since along with its sister 15-year rate.
Adjustable rates also showed a decline for the week, hitting 3.69% on a five year Treasury indexed hybrid mortgage from 3.72% the previous week. But the 1-year Treasury indexed ARM averaged 3.25% with an average 0.6 point, a slight increase from 3.23% a week ago to show how mortgage rates were mixed for the week, according to the lender’s weekly survey.
Rates are expected to remain low for the next year by most real estate economists in order to entice buyers back into the housing market and help heal the U.S. economy, which has suffered heavy damage in terms of foreclosures and declining home prices in the majority of the U.S.
New home construction remains weak as the Commerce Department reported that new home building fell by 9% in December, led by a 38% drop in the Midwest.