Existing users please login

 

Home / Markets / Economy

Mortgage Rates, Demand Continue Decline

 
By Adam Samson
FOXBusiness
     

    Mortgage rates and demand slipped in the last two weeks amid continued economic and financial tumult. 

    The average rate for a 30-year mortgage continued falling for a third straight week to 6.04% for the week ended November 20, from 6.14% in the previous week according to a report by Freddie Mac (FRE).  This reading comes in at 0.2% below the average weekly reading since May 1.

    The interest rates for shorter-term 15-year mortgages also declined, to 5.73% from 5.81% in the previous week.  One-year adjustable-rate mortgages too saw some relief, falling to 5.29% from 5.33% in the previous week.

    Freddie Mac says the decline is due to weakening increasing financial and economic headwinds. 

    "Long- and short-term mortgage rates fell for the third consecutive week amid continuing signs of a slowing economy," said Freddie Mac chief economist Frank Nothaft in a release. "Retail sales fell for the fourth straight month in October and consumer sentiment remained near a 28-year low in November.           

    Mortgage demand is also slipping, according to a report released Wednesday by the Mortgage Bankers Association.  The MBA Purchase Index -- a proxy for new mortgage activity -- tumbled by 13% for the week ended Nov. 14.  The report also showed nearly half of mortgage activity was due to individuals refinancing mortgages, up from 45% in the previous week. 

    Generally, mortgage demand increases as a result of lower interest rates, but this boost in demand has yet materialize.

     

    Fox Business Video