Thirty-year fixed, 15-year fixed and 5/1 ARM rates all took a step lower Wednesday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.
Rates seem to be topping off for now, with a recent lack of news to trigger a major move. Central banks may change that in the coming days, with monetary policy announcements expected from the European Central Bank Thursday and the U.S. Federal Reserve next week.
Overall mortgage applications declined slightly for the week ending Dec. 2, according to the Mortgage Bankers Association. Purchase applications were up 0.4%, while refinance loan applications fell 1% from the previous week.
FHA mortgage applications were higher, as were VA and USDA loans. The average contract interest rate for conforming 30-year fixed-rate mortgages was 4.27%, the highest since October 2014, according to the MBA.
Home prices continue to soar
For homeowners, it’s a blessing. For homebuyers, not so much. Home prices continue to rise — and the forecast is for more of the same in 2017. Real estate analytics firm CoreLogic reported home prices nationwide, including distressed sales, rose 6.7% year-over-year in October.
“Home prices are continuing to soar across much of the U.S., led by major metro areas such as Boston, Los Angeles, Miami and Denver,” Anand Nallathambi, president and CEO of CoreLogic, said in a news release. “Prices are being fueled by a potent cocktail of high demand, low inventories and historically low interest rates.”
Price appreciation may slow in 2017, he said, but not by much.
“Looking forward to next year, nationwide home prices are expected to climb another 5% in many parts of the country to levels approaching the pre-recession peak,” Nallathambi said.
Homeowners looking to lower their mortgage rate can shop for refinance lenders here.
NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.