The Gardner Group Blog

After falling to the lowest level in at least 38 years, long-term mortgages followed bond yields higher this week.

A 30-year fixed-rate mortgage averaged 4.81 percent in the week ending Dec. 10, up from 4.71 percent last week. Long-term rates are still well below year ago levels, when 30 year mortgages averaged 5.47 percent.

A 15-year fixed-rate mortgage averaged 4.32 percent this week, with one year adjustable-rate mortgages averaging 4.24. percent.

"Following an upbeat employment report, long-term bond yields rose slightly and fixed mortgage rates followed," says Freddie Mac (NYSE: FRE) chief economist Frank Nothaft.

Pending sales of existing homes rose for the ninth consecutive month in November, up 3.7 percent from the previous month. Pending sales of existing homes were up almost 32 percent from a year ago, the biggest annual increase on record.

The National Association of Realtors now predicts self-sustaining housing market conditions and firming home prices in most areas by the middle of next year, citing a continued decline in inventories.

From Washington Business Journal