Increasing Personal Property Rates Match Other Key Numbers

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Personal property rates have been rising three weeks running based on data from the Home loan Bankers Association and Freddie Mac. Other key signals for instance job creation, home sales and consumer spending rose together with home loan rates. After an extended period of record low personal property rates, refinancing has fallen precipitously.

Last year’s mortgage rates higher than this year

Fixed mortgage rates rose again this week as economic data showed the economy may turn out being stronger within the fourth quarter than the 3rd. Freddie Mac reported the rate on a 30-year fixed-rate mortgage averaged 4.46 percent as of Dec. 2, rising from 4.40 percent the week before. The fixed rate mortgage was around 4.71 % a year ago. A year ago, the rates were also higher for 15-year fixed rate mortgages and adjustable rate mortgages. They were lower last week than this week as well though. Getting the average fixed-rate mortgage rate required a down payment of 8 percent of the mortgage amount charged as pre-paid interest.

Economy might recover

The positive economic news driving mortgage rates higher includes employment, although the jobless rate rose to 9.8 percent in the latest jobs report from the Labor Department. There has been a 10 consecutive month growth within the private sector job creation which is at its highest in three years. That is a good outlook to go forward with for markets. A record on pending existing home sales showed an 11 % boost, although prices still trend downward. The consumer confidence index also jumped to 54.1 percent in Nov., which showed with a surge in holiday spending.

Mortgage refinancing hurting

A side effect of increasing mortgage rates is the apparent end to a mortgage refinancing window that homeowners took advantage of to the tune of nearly $1 trillion. Many people who may have thought they could benefit from record-low mortgage rates appear to be no longer interested in refinancing. Within the last week, there were 21.6 less applications as outlined by the Mortgage Bankers Association.


Wall Street Journal

The Chicago 77

Christian Science Monitor

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