A week after taking their largest weekly drop in nearly four years, mortgage rates remained stable for the week of November 29.
According to the latest Freddie Mac Primary Mortgage Market Survey, the average 30-year fixed-rate mortgage was 4.81 percent last week, unchanged from the week before. Thirty-year rates were also unchanged the two weeks prior to a 13-basis point decline during the week of Thanksgiving.
Fifteen-year fixed rates averaged 4.25 percent, up slightly from 4.24 percent the week before. Five-year adjustable-rate mortgages carried an average rate of 4.12 percent, up from 4.09 percent the previous week.
“Mortgage rates stabilized the last couple of months as interest rate sensitive sectors such as new auto and home sales have clearly softened the outlook for the economy,” said Freddie Mac Chief Economist Sam Khater.
“Homebuyers pounced on the stability in rates as purchase mortgage applications increased, which indicates that despite higher mortgage rates this year there are buyers on the fence waiting for the right time to buy.”
According to the National Association of Realtors (NAR), the rise in mortgage rates this year has led to 10 consecutive months that contract signings have declined year-over-year.
“The recent rise in mortgage rates have reduced the pool of eligible homebuyers,” said NAR Chief Economist Lawrence Yun. “While the long-term prospects look solid, we just have to get through this short-term period of uncertainty.”