Nebraska Mortgage Rates | December 17 2021

December 17, 2021
Michael Petrovich
Uncategorized

Weekly Rate Update

Rates fluctuate every day and are based on several factors. For an exact rate quote, submit your request HERE for a free evaluation.

PMMS 12/16/2021

The average 30-year-fixed rate mortgage increased to 3.12% during the week ending Dec. 16, up from 3.10% the week prior. Sam Khater, Freddie Mac’s chief economist, said in a statement that while house price growth is slowing, prices remain high due to solid housing demand and low supply. “We expect rates to continue to increase into 2022, which may leave some potential homebuyers with less room in their budgets on the sideline.”

According to Khater, the 30-year-fixed mortgage rate inched up due to economic improvement and a shift in monetary policy guidance. The Federal Reserve announced on Wednesday it is accelerating the tapering program initiated in November “in light of inflation developments and the further improvement in the labor market.” Beginning in January, it will reduce the pace of its monthly purchases by $20 billion for Treasury securities and $10 billion for agency mortgage-backed securities.

The central bank sees progress on vaccinations and strong policy support, solid job gains, and improvements in sectors most affected by the pandemic. But supply and demand imbalances and the reopening of the economy have continued to contribute to elevated inflation levels.

MBA 12/15/2021

Mortgage applications fell 4% for the week ending Dec. 10, large part because fewer borrowers are looking to refi their existing mortgages. The decrease was mainly driven by the refi index falling 6.4% from the previous week on a seasonally adjusted basis. Concurrently, the purchase index increased 0.7% from the week prior.

Compared to a year ago, mortgage applications declined across the board. The overall market composite index dipped 30.9% on a seasonally adjusted basis. Refi apps fell 41.4% year over year, and purchase applications decreased 10.3% in the same period.

“Fewer homeowners have a strong incentive to refinance at current rates,” Joel Kan, the MBA’s associate vice president of economic and industry forecasting, said in a statement.

The trade group estimates that the average contract 30-year fixed-rate mortgage for conforming loans ($548,250 or less) remained unchanged at 3.30%.

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