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Fixed-rate mortgage rates were unchanged on Wednesday. The average 30-year mortgage rate is 4.16%, which equates to a $486.69 monthly payment per $100,000 borrowed. A month ago, the equivalent payment would have been lower by $11.58.

The average 15-year mortgage is 3.32%, equating to a $706.08 monthly payment per $100,000 borrowed. A month ago, the equivalent payment would have been lower by $11.17.

Rate (National Average)

Today

1 Month Ago

30-year fixed jumbo

4.66%

4.48%

30-year fixed

4.16%

3.96%

15-year fixed

3.32%

3.09%

30-year fixed refi

4.20%

4.03%

15-year fixed refi

3.34%

3.16%

5/1 ARM

3.50%

3.28%

5/1 ARM refi

3.69%

3.59%

5/1 ARM: ADJUSTABLE-RATE MORTGAGE WITH AN INITIAL FIXED 5-YEAR INTEREST RATE. DATA SOURCE: BLOOMBERG. RATES MAY INCLUDE POINTS..

Mortgage rates hit new highs, but that isn't deterring homebuyers

The Mortgage Bankers' Association Mortgage Application Survey for the week ending Dec. 16, released this morning, showed that the effective average rate on a 30-year fixed-rate conforming loan had increased over the previous week. ("Conforming" loans are for balances of $417,000 or less.) The average contract rate, before points and origination fees, rose from 4.28% to 4.41%, its highest level since May 2014.

The average contract rate on a 15-year fixed-rate mortgage rose to 3.64% from 3.52%, its highest level since January 2014. The average effective rate (i.e., accounting for points, including origination fees) increased.

The Market Composite Index, which tracks mortgage loan application volume, rose 2.5% on a seasonally adjusted basis; drilling down, the Refinance Index and the Purchase Index were both up 3%. Those increases – during a period in which rates increased -- represent a reversal in the previous week's trend and suggest that potential homebuyers are not unduly concerned about week-to-week fluctuations in mortgage rates. And that's as it should be.

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