Giving thanks for stable mortgage ratesby Tim Manni
Imagine if mortgage shoppers acted like retail shoppers on Black Friday. “The image of potential homebuyers and refinancers waiting in lines at a mortgage banker’s office at 3am is to get a quarter-point savings is certainly an amusing one but one we are unlikely to see,” wrote Keith Gumbinger in the latest Market Trends newsletter.
But while others are cashing in on sizable discounts on everything from big-screen TVs to toaster ovens, mortgage shoppers—whether buyers or refinancers—can be thankful for stable mortgage rates this holiday season.
“With a shortened, holiday-infused week this week and only a small group of economic data to consider, mortgage rates moved the smallest week-to-week amount of the last month,” wrote Gumbinger.
Mortgage rates mostly stable
According to the latest data from HSH.com’s Monday-through-Friday survey:
- 30-year: The overall average rate for 30-year fixed-rate mortgages increased by four basis points (0.04 percent) to 4.41 percent
- 15-year: The overall average rate for 15-year fixed-rate mortgages sported a rise of three basis points (0.03 percent) from the prior week’s value, increasing to 3.51 percent
- FHA: FHA-backed 30-year fixed-rate mortgages moved a little further away from the four percent level, with a three basis point rise nudging it to 4.05 percent for the week ending November 27 (holiday-shortened week)
- ARMs: The overall 5/1 Hybrid ARM moved by the least of the bunch, adding just one one-hundredth of a percentage point (0.01 percent) to 3.03 percent for the week.
This week …
Mortgage rates will continue to be in “a bit of a lull — call it a sweet spot, if you will” this week as we await the next Fed meeting and possible decision to begin tapering QE.
“That markets are mostly behaving is something to be grateful for, since we’ve seen plenty of volatility this year and even this month.”