Tags: US | Mortgage | Rates

Mortgage Rates Top 5 Percent, Applications Fall

Thursday, 24 Dec 2009 11:32 AM

The average fixed-rate for a 30-year mortgage climbed above 5 percent for the first time in two months, leading to a decline in mortgage applications.

The average fixed rate on a 30-year mortgage was 5.05 percent this week, up from 4.94 percent last week, Freddie Mac said Thursday. The last time rates were above 5 percent was the week ending Oct. 29, when they were 5.03 percent.

Mortgage rates have risen since they hit a record low of 4.71 percent the week of Dec. 3. They are closely tied to yields on long-term government debt, which have gone up since then.

Higher rates usually lead to a decrease in loan applications to purchase or refinance a home.

Mortgage applications for purchases fell nearly 12 percent last week compared with the previous week, while refinance applications dropped 10 percent, the Mortgage Bankers Association said Wednesday.

A Federal Reserve program to buy $1.25 trillion in mortgage-backed securities has kept rates on 30-year mortgages around 5 percent this year. The program, designed to make home buying more affordable, is set to end next spring.

Freddie Mac collects mortgage rates each week from lenders around the country. Rates often fluctuate, even within a given day

The average rate on a 15-year fixed mortgage rose to 4.45 percent from 4.38 percent last week.

Rates on five-year, adjustable-rate mortgages averaged 4.4 percent, up from 4.37 percent last week. Rates on one-year, adjustable-rate mortgages rose to 4.38 percent from 4.34 percent.

The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 point for 30-year loans. The fee averaged 0.6 point for 15-year, five-year and one-year mortgages.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

   
1Like our page
2Share
FinanceNews
The average fixed-rate for a 30-year mortgage climbed above 5 percent for the first time in two months, leading to a decline in mortgage applications.The average fixed rate on a 30-year mortgage was 5.05 percent this week, up from 4.94 percent last week, Freddie Mac said...
US,Mortgage,Rates
280
2009-32-24
Thursday, 24 Dec 2009 11:32 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved