Freddie: 2016 Rates to Stay Near Record Lows
Mortgage rates edged slightly higher for the second consecutive week and following the Federal Reserve’s decision Wednesday to raise its short-term interest rates for the first time since 2006.
"As was almost-universally expected, the Federal Open Market Committee of the Federal Reserve elected this week to raise short-term interest rates for the first time since 2006,” says Sean Becketti, Freddie Mac’s chief economist. “We take the Fed at its word that monetary tightening in 2016 will be gradual, and we expect only a modest increase in longer-term rates. Mortgage rates will tick higher but remain at historically low levels in 2016.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 17:
- 30-year fixed-rate mortgages: averaged 3.97 percent, with an average 0.6 point, rising from last week’s 3.95 percent average. A year ago, 30-year rates averaged 3.80 percent.
- 15-year fixed-rate mortgages: averaged 3.22 percent, with an average 0.5 point, increasing from last week’s 3.19 percent average. Last year at this time, 15-year rates averaged 3.09 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 3.03 percent, with an average 0.4 point, holding the same average as last week. A year ago, 5-year ARMs averaged 2.95 percent.
- 1-year ARMs: averaged 2.67 percent, with an average 0.2 point, increasing from 2.64 percent last week. A year ago, 1-year ARMs averaged 2.38 percent.
Source: Freddie Mac