Monday, August 27, 2012

Uptick in US mortgage rates

Average mortgage rates in the US increased last week; an indication that the country’s housing market continues to gain momentum, according to Freddie Mac’s Primary Mortgage Market Survey
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Over the past week, the average 15-year fixed-rate mortgage increased slightly by one basis point to 2.89 percent while the 30-year fixed-rate mortgage climbed from 3.62 to 3.66 percent.



However, home loan applications fell by 7.4 percent due to rising rates, according to the Mortgage Bankers Association (MBA).

The industry body also noted that refinancing applications dropped by nine percent, while its percentage of overall mortgage applications fell to 80 percent from 81 percent.

Nonetheless, MBA’s average 30-year fixed-rate mortgage contract rate for loan balances below US$417,500 (S$521,248) climbed by 10 basis points to 3.86 percent, while those above this amount rose to 4.11 percent from 4.03 percent.

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