Market Insight, Mortgage News, Mortgage Rates

The Week Ahead for Mortgage Rates: December 3, 2012

December 3, 2012 by · Leave a Comment 

Freddie Mac 30-year fixed rate mortgage ratesLow mortgage rates are pumping up home affordability.

Average 30-year fixed-rate mortgage rates made a new all-time low in November, continuing this year’s Refinance Boom and giving fuel to the budding housing market recovery.

At month-end, Freddie Mac’s survey of 125 banks nationwide put the benchmark product’s rate at 3.32% for borrowers willing to pay 0.8 discount points. This is just 0.01 percentage point above the record-low rate establishing prior to Thanksgiving.

Click here to see today’s mortgage rates.

The 15-year fixed mortgage is similarly low, posting 2.64 percent nationwide, on average. This, too, is only slightly higher the all-time low set the week prior.

Falling mortgage rates have helped to offset rising home prices in many U.S. cities. 

Steady job creation and rising consumer confidence has swelled the pool of home buyers nationwide, causing home inventories to shrink and home prices to rise. The improving economy has also led to rising rents and now, within many housing markets, it’s less costly to buy and own a home than to rent a comparable one.

Click here to see today’s mortgage rates.

A $1,000 mortgage payment affords a $225,000 mortgage payment in Crown Point Indiana.

Last week, the economy was shown to be improving.

  • The Commerce Department showed Q3 2012 Gross Domestic Product increased at 2.7% annual rate
  • The Labor Department showed first-time unemployment filings dropping by 23,000 claims
  • The Pending Home Sales Index jumped to its highest point since April 2010
  • The Existing Home Sales report showed home sales up 2.1%
  • The Case-Shiller Index showed home values making annual gains 

In addition, Federal Reserve Ben Bernanke said that the central bank will take action to speed economic growth, should the U.S. economy start to side-step. 

Click here to see today’s mortgage rates.

There is little on the economic calendar this week, except for Friday’s Non-Farm Payrolls report. Wall Street expects to see 80,000 net new jobs created in November and national Unemployment Rate to rise to 8.0%.

If the report’s actual results are stronger-than-expected, mortgage rates will likely climb from their all-time lows. If the report comes back weak, rates should stay unchanged.

This is The Week Ahead for Mortgage Rates: December 3, 2012.

Click here to see today’s mortgage rates.

Quick general rule of thumb when keeping an eye on mortgage rates.

Strong Economic News: $$$ from Bonds —> Stocks = Home Loan Rates Go Up

Weak Economic News: $$$ from Stocks —> Bonds = Home Loan Rates Go Down

If you or someone you know is thinking about buying a home, the combination of low home loan rates and affordable home prices make this an ideal time to buy a home. Want to know if you can afford a new home? Call or text me at 512-522-7284 to discuss your personal situation and your home loan options!

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James K Barath, CMPS®

James K Barath is a Certified Mortgage Planning Specialist®, Certified FICO® Professional, Certified Military Housing Specialist® and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James for your FREE Home Loan Approval !  His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy!

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