The average weekly 30-year mortgage rate for the sixth week in a row is not far from record lows and pretty close to 4%, according to Freddie Mac.
At 3.99%, the average 30-year rate for the week ending Dec. 8 is a basis point lower than the previous week, Freddie's weekly rate report Thursday shows.
There was slightly more variation in shorter-term mortgage rates, but these also continued to be relatively stable on a weekly basis.
The 15-year rate was down three basis points at 3.27%, the five-year hybrid Treasury-indexed rate was up three basis points at 2.93%; and the average for the one-year Treasury adjustable-rate mortgage was up two basis points at 2.8%.
Average points remained highest for 15-year product at 0.8 of a point, compared to 0.7 of a point for 30-year product, 0.6 of a point for one-year Treasury ARMs and 0.5 of a point for five-year Treasury hybrids.
Compared to a year ago, 30-year rates are down 62 basis points and with median sales prices on existing homes down 4.7% during the same period affordability remains attractive and near record highs, Freddie Mac vice president and chief economist Frank Nothaft said in the weekly report. He noted that National Association of Realtors figures indicate monthly principal and interest payments represented just 12.6% of median family income in October, according to NAR's recently released weekly affordability index report.
Generally rates on all mortgage products tracked by Freddie Mac in the most recent week are down about 50-70 basis points from last year.
Going forward, rates in general are expected to remain relatively stable and “range-bound” as the market prepares to enter 2012, according to a Barclays Capital global outlook report released Thursday.
Dean Maki, chief U.S. economist at Barclays, said at a press conference Thursday that a third round of quantitative easing currently looks unlikely, but he “wouldn't rule it out.”
