Mortgage Rates Increased Slightly

Person drawing statistic increase
Mortgage loan interest rates increased slightly this week according to Freddie Mac’s recent survey results. While most of the interest rates rose or leveled out, the increases were minimal and remained near the record lows set last week.

The 30-year fixed-rate mortgage (FRM) averaged 3.32 percent with an average 0.8 point for the week ending on Nov. 29, 2012, up from last week’s record low average of 3.31 percent. At this time last year, the 30-year FRM averaged 4.00 percent.

To put that differnece into perspective, if a borrower took out a 30-year $150,000 home loan at today’s mortgage loan interest rate of 3.32 percent, their monthly payment would be $658.59. After 30 years, the borrower will pay just over $237,092.

If that same borrower took the mortgage out one year ago when mortgage rates were 4.00 percent, he or she would end up paying $716.12 monthly, for a 30-year total payment of about $257,803.

The report also showed that the 15-year fixed-rate mortgage averaged 2.64 percent with an average 0.6 point. The rate is up from last week’s average of 2.63 percent. A year ago, the 15-year fixed mortgage loan interest rate averaged 3.30 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.72 percent with an average of 0.6 point this week. It is down from last week when it averaged 2.74 percent. Last year at this time, the 5-year ARM averaged 2.90 percent.

The 1-year Treasury-indexed ARM averaged 2.56 percent with an average 0.5 point, the same as last week’s average.  A year ago, the 1-year adjustable-rate mortgage averaged 2.78 percent.

Frank Nothaft, Freddie Mac vice president and chief economist, said the mortgage loan interest rates were virtually unchanged this week due to concerns about the fiscal cliff.

“Although low mortgage rates failed to boost new home sales in October, year-to-date sales are up 20 percent compared with 2011 volumes, and there are growing signs of a turnaround in housing prices,” Nothaft said in a release.

The S&P/Case-Shiller national home price index rose 5.2 percent over the first three quarters of 2012. All 20 city indicators, which are seasonally adjusted, reported positive growth over the first nine months. Phoenix reported the highest lead, with a 17.9 percent increase.

Additionally, the Federal Reserve’s Nov. 28 regional economic review, the Beige Book, states that 10 out of 12 districts reported an improvement into November for single-family homes.

Freddie Mac, a provider of stability and liquidity for the United States’ residential home loan markets, conducts surveys weekly to assess four types of mortgage loan interest rates. Freddie Mac’s Primary Mortgage Market Survey does not include closing costs, which are still required for borrowers.