Mortgage rates up for third straight week

Freddie Mac reported that rates for 30-year fixed-rate mortgages average 4.46 percent for the week ending Dec. 2, up from the previous week’s average of 4.40 percent. Those figures still lag behind the average mortgage rate seen at this time last year, which was 4.71 percent.

“Mortgage rates followed bond yields higher this week as recently released economic data suggest the economy may be stronger this quarter than the previous. Regional manufacturing indexes for Dallas, Chicago and Milwaukee all rose in November. In addition, the Federal Reserve noted that 10 of its 12 regions saw improvement through mid-November in its December 1st regional economic review,” said Frank Nothaft, vice president and chief economist at Freddie.

The average rate for 15-year fixed-rate mortgages was 3.81 percent, up from last week’s average of 3.77 percent.

Adjustable rate mortgages were also up, with the five-year Treasury-indexed hybrid adjustable-rate mortgage averaging 3.49 percent and the one-year Treasury-indexed ARM averaging 3.25 percent.

However, Nothaft also noted housing prices are trending downward. Only six cities are reporting positive annual growth on that front, compared to nine in August.