Here It Comes: Mortgage Rates Are Climbing
Average fixed-rate mortgages were on the rise this week as market expectations mounted over a possible rate hike from the Federal Reserve. Those expectations pushed the 30-year fixed-rate mortgage to its largest increase since June, up 11 basis points to 3.87 percent, Freddie Mac reported in its weekly mortgage market survey.
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In recent commentary, Federal Reserve Chair Janet Yellen referred to a December rate hike as ‘live possibility’ if economic information supports it. The Fed's benchmark short-term rate has stayed near zero since December 2008, which has also helped to keep mortgage rates low ever since.
Freddie Mac reported the following national averages with mortgage rates for the week ending Nov. 5:
- 30-year fixed-rate mortgages: averaged 3.87 percent, with an average 0.6 point, rising from last week’s 3.76 percent average. Last year at this time, 30-year rates averaged 4.02 percent.
- 15-year fixed-rate mortgages: averaged 3.09 percent, with an average 0.6 point, increasing from last week’s 2.98 percent average. A year ago, 15-year rates averaged 3.21 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 2.96 percent, with an average 0.4 point, increasing from last week’s 2.98 percent average. Last year at this time, 5-year ARMs averaged 2.97 percent.
- 1-year ARMs: averaged 2.62 percent, with an average 0.2 point, increasing from 2.54 percent last week. A year ago, 1-year ARMs averaged 2.45 percent.
Source: Freddie Mac