The average 30-year fixed mortgage rate increased again, marking the third consecutive week of declines, the most recent results from Freddie Mac’s Primary Mortgage Survey reported. 

The 30-year fixed-rate mortgage averaged 3.93% for the week ending Dec. 3, 2015, down from last week when it averaged 3.95%. Last year, it averaged 3.89%. 

Also falling, the 15-year FRM this week averaged 3.16%, down from last week when it averaged 3.18%. A year ago at this time, the 15-year FRM averaged 3.10%. 

The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.99% this week, down from last week when it averaged 3.01%. In 2014, the 5-year ARM averaged 2.94 percent.

The 1-year Treasury-indexed ARM averaged 2.61% this week, up from 2.59% last week and 2.41% a year ago.

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(Source: Freddie Mac)

"Treasury yields ticked down 3 basis points after weak manufacturing data. In response, the 30-year mortgage rate dropped 2 basis points to 3.93%,” said Sean Becketti, chief economist with Freddie Mac.

“After the survey closed, Yellen implied that the economy is ready for a rate hike in December. However, all eyes remain on this Friday's jobs report, the last significant release prior to the FOMC's meeting,” he added. 

Seven years after the mortgage crisis, and the placing of Fannie Mae and Freddie Mac into conservatorship under the independent federal agency, the Federal Housing Finance Agency, the Obama administration still must address the issues that are of great importance to consumers seeking to buy a home, lenders who seek to finance those purchases and the future viability of the U.S. mortgage market.

The independent FHFA has failed to advance the policies required by the Housing and Recovery Act of 2008 and the administration continues to stand pat, waiting for Congress to act legislatively. Treasury Secretary Lew and Michael Stegman, Senior Housing Policy Advisor to President Obama recently articulated this approach. 

While the regulatory and safety and soundness authorities included in HERA meant the GSEs may not have actually required government support in the first place, these authorities have not been implemented due to the government control of the companies. 

As a result, rather than holding more than the inadequate amounts of capital they held before the crisis, the GSEs have no capital at all. Their earnings are sent to the Treasury rather than retained to build capital and the GSEs are forced to rely on government support.

As Washington wrings its hands over the Federal Housing Administration’s 2% reserve number (it is backstopped by the federal government), Fannie Mae’s reserve capital is .06%. That’s not a typo: the FHA has 33 times the reserves of Fannie Mae, a...