"Mortgage rates were up for the third-consecutive week as markets responded to a stronger-than-expected job market report for October," said Mike Fratantoni, chief economist for the MBA.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.12 percent, its highest level since August, from 4.01 percent, with points decreasing to 0.45 from 0.47 (including the origination fee) for 80 percent loan-to-value ratio loans.
Refinance applications, which are highly rate-sensitive, fell 2 percent from the previous week, seasonally adjusted, but are 4 percent higher than one year ago, when rates were slightly lower. Some borrowers may be rushing to refinance now, seeing the writing on the wall that rates may only rise further from here. The Federal Reserve has sent the strongest message so far that it could raise rates in December. That is why rates began rising even before the strong employment report.
"The journey has been a quick one, with the spike from six-month lows to four-month highs happening in just under two weeks," said Matthew Graham, chief operating officer of Mortgage News Daily.
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