Keep up with current rates and related news at HousingWire’s Mortgage Rates Center. Rates are updated twice weekly based on data from the Mortgage Bankers Association (MBA) and Freddie Mac‘s Primary Mortgage Market Survey (PMMS). Freddie Mac’s PMMS only covers purchase mortgages. In addition, the PMMS looks at rates from the first three days of the week from lender websites, while the MBA survey covers the rates on apps collected over the prior full week.
Mortgage rates remained at 3.10% in the week ending Nov. 24. A year ago at this time, the average 30-year fixed-rate loan averaged just 2.72%.
Sam Khater, Freddie Mac’s chief economist, said interest rate volatility has been low, despite the noise around the economy, inflation, and monetary policy. “For most of 2021, mortgage rates have stayed within half a percentage point, which is a smaller range than in past years.”
Mortgage rates tend to move in concert with the 10-year Treasury yield, which reached 1.67% on Nov. 23, up from 1.63% a week before.
Mortgage applications increased 1.8% for the week ending Nov. 19, despite higher rates. The increase was mainly driven by the purchase index growing by 4.7% from the previous week, on a seasonally adjusted basis. Concurrently, the refinance index grew by 0.4% from the week prior.
Joel Kan, the MBA’s associate vice president of economic and industry forecasting, said in a statement that purchase activity increased for the third straight week, as housing demand remains robust, even as the housing market approaches the typically slower holiday season.
“Both conventional and government loan applications increased, and the average loan size for a purchase loan was at $407,200, continuing its ongoing 2021 run of being mostly above $400,000,” Kan said.
Regarding refi activity, Kan added that “borrowers continue to lock in mortgages in anticipation of higher rates in the future.”
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