The mortgage rates in this report are based on data from U.S. Bank, and the tracker shows the lowest and highest interest rates available for 30-year fixed, 15-year fixed, 5/1 ARM, and 30-year jumbo mortgages.
The average rate for a 30-year fixed mortgage is 4.16%, which is slightly up from last week's rate of 4.15%. The average rate for a 15-year fixed mortgage also increased, from 3.38% to 3.41%. Meanwhile, the 5/1 ARM maintained its rate at 3.45%, and the average rate for a 30-year jumbo decreased from 4.36% to 4.35%.
These changes in rates are largely due to recent economic news regarding the state of the housing market and employment. In October, the U.S. Bureau of Labor Statistics reported that the unemployment rate dropped to 4.6%, down from 4.9% a year ago. This news helped to increase consumer homes and drove up demand for mortgages.
Additionally, the National Association of Home Builders (NAHB) reported that their monthly index of builder confidence rose from 65 to 67 in November, indicating greater optimism with regard to housing market activity. NAHB Chief Economist Robert Dietz commented that "builders are seeing steady demand for new homes throughout much of the country."
These economic indicators have all contributed to an increase in mortgage rates, with the average rate for a 30-year fixed mortgage rising nearly five basis points since the beginning of October. For those considering a purchase or refinance, the question becomes whether or not this trend will continue.
Analysis:
The Vantage Mortgage Group’s weekly mortgage interest rate tracker provides an overview of the current rates for various types of mortgages. As of December 14th, 2016, the average rate for a 30-year fixed mortgage was 4.16%, up from 4.15% the previous week. The average rate for a 15-year fixed mortgage also rose, increasing from 3.38% to 3.41%. Meanwhile, the 5/1 ARM remained steady at 3.45% and the 30-year jumbo mortgage decreased from 4.36% to 4.35%.
Changes in the mortgage rates can be attributed to the recent economic climate. The Bureau of Labor Statistics reports that the unemployment rate dropped to 4.6% in October, down from 4.9% a year ago. This has contributed to an increase in consumer home purchases, and thus, an increased demand for mortgages. Additionally, the National Association of Home Builders (NAHB) reported that their monthly index of builder confidence rose from 65 to 67 in November. This news reflects that there is still optimism and steady demand for new homes throughout the country.
As a result of the economic indicators, the average rate for a 30-year fixed mortgage has risen by almost five basis points since the beginning of October. This leads to the question of whether or not this upward trend in mortgage rate will continue.
This article was contributed on Dec 19, 2023
