Mortgage rates fall

December 16, 2013

Click Image to view larger

After several economic reports were released over the last few weeks, including the November jobs report, signs that the economy was continuing to grow stronger prompted mortgage rates to unexpectedly fall slightly.

Freddie Mac announced that interest rates for a 30-year fixed rate mortgagedropped to 4.42 percent, down from the previous week's average of 4.46 percent. Mortgage rates were nearing an average of 4.6 percent only two weeks earlier.

"Mortgage rates were little changed amid a light week of economic data releases," said Freddie Mac Chief Economist Frank Nothaft. "Of the few releases, total nonfarm payroll employment rose by 203,000 in November and the unemployment rate declined to 7 percent."

The average rate for a 15-year fixed mortgage also declined during the same week, reaching 3.43 percent. The rate averaged 3.47 percent the previous week. Nothaft also noted that mortgage activity appeared to be picking up for single-family properties, suggesting that higher mortgage rates are easily absorbed by American borrowers.

"Also, single family mortgage debt outstanding increased for the first time since 2008," Nothaft stated. "This is a positive sign as it reflects that the pick-up in new purchase-money originations has offset loan paydowns and led to a net increase in principal outstanding."

Contact the Federal Savings Bank, a veteran owned bank, to find out more about affordable mortgages options.