Mortgage rates little changed after Fed plans to taper stimulus

Mortgage rates in the U.S. were little changed as lenders absorbed news that the Federal Reserve plans to taper bond purchases that have helped support the real estate market. More

To continue reading this article, please do one of the following.



real estate

Mortgage rates little changed after Fed plans to taper stimulus

Posted 12/26/13

LOS ANGELES – Mortgage rates in the U.S. were little changed as lenders absorbed news that the Federal Reserve plans to taper bond purchases that have helped support the real estate market.

The average rate for a 30-year fixed mortgage was 4.48 percent this week, up from 4.47 percent, according to a statement today from Freddie Mac. The average 15-year rate climbed to 3.52 percent from 3.51 percent, the McLean, Va.-based mortgage-finance company said.

The Federal Open Market Committee said on Dec. 18 that it will trim its monthly asset purchases starting in January, taking the first step toward unwinding the stimulus as the economy strengthens. Mortgage rates have climbed from near-record lows in May on speculation that the central bank would begin scaling back the program.

“Slightly higher rates are unlikely to be enough to derail the housing-market recovery as improvement in labor markets and other economic fundamentals keeps the recovery on track,” Gennadiy Goldberg, U.S. strategist for TD Securities in New York, said in a Dec. 24 email.

New homes sold in November at an annualized pace of 464,000, beating economists’ expectations and holding close to a five-year high, Commerce Department data showed this week.

The average 30-year mortgage rate reached a two-year high of 4.58 percent in August, spiking up from 3.35 percent in May.

Higher rates have reduced demand for refinancing. A measure of applications to cut monthly payments fell 7.7 in the period ended Dec. 20 from the prior week, according to the Mortgage Bankers Association. The index hit its lowest level since 2008 and is down 72 percent from the week ended May 3. The Washington-based group’s purchase measure dropped 3.5 percent last week and is down 24 percent from May 3.

Calendar
PBN Hosted
Events

Two Great Programs...One Great Event. PBN's Annual Celebration of Growth and Innovation is now underway. 2014 applications are now available. Deadline August 1st.
  • Healthiest Employers
    Celebrate with the Healthiest Employers in RI on August 14th at the Providence M ...
  • 40 Under Forty
    Thank you to our sponsors and to all those who attended the 10th Anniversary of ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement