Mortgage Rates Move Higher

By December 19, 2016News, Uncategorized

Freddie Mac’s most recent Primary Mortgage Market Survey shows average fixed mortgage rates moving higher for the seventh consecutive week.

“As was almost-universally expected, the Federal Open Market Committee (FOMC) closed the year with its one and only rate hike of 2016,” says Sean Becketti, Freddie Mac’s chief economist. “The consensus of the committee points to more rate hikes in 2017. However, the experience of this year, combined with the policy uncertainty that accompanies a new administration, suggests a wait-and-see outlook.

“This week’s mortgage rate survey was completed prior to the FOMC announcement,” Becketti adds. “The 30-year mortgage rate rose 3 basis points on the week to 4.16 percent. The Mortgage Bankers Association’s Applications Survey posted drops in both refinance and purchase applications, registering the impact of recent mortgage rate increases. If rates continue their upward trend, expect mortgage activity to be significantly subdued in 2017.”

Here’s a snapshot of Freddie Mac’s survey findings for the week ending Dec. 15:

  • The 30-year fixed-rate mortgage averaged 4.16 percent, with an average 0.5 point, up from the previous week when it averaged 4.13 percent. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.97 percent.
  • The 15-year fixed-rate mortgage averaged 3.37 percent, with an average 0.5 point, up from the previous week when it averaged 3.36 percent. A year ago at this time, the 15-year fixed-rate mortgage averaged 3. 22 percent.
  • The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.19 percent, with an average 0.4 point, up from the previous week when it averaged 3.17 percent. A year ago, the five-year adjustable-rate mortgage averaged 3.03 percent.