Mortgage Rates Up Slightly This Week

Average mortgage rates inched up, but the 30-year fixed-rate mortgage remains below 4 percent and continues to offer home buyers and refinancers historically low rates.

“Thirty-year fixed mortgage rates have been bouncing around in a narrow 10 basis points range since October,” says Len Kiefer, Freddie Mac’s chief economist.

“The U.S. average 30-year fixed mortgage rate increased 1 basis point to 3.94 percent in this week’s survey. The majority of our survey was completed prior to the surge in long-term interest rates that followed the passage of the tax bill. If those rate increases stick, we’ll likely see higher mortgage rates in next week’s survey.

But even with yesterday’s increase, the 10-year Treasury yield is down from a year ago, and 30-year fixed mortgage rates are 36 basis points below the level we saw in our survey last year at this time. Mortgage rates are low.”

Freddie Mac reports the following national averages for the week ending Dec. 21:

• 30-year fixed-rate mortgages: averaged 3.94 percent, with an average 0.5 point, rising from last week’s 3.93 percent average. Last year at this time, 30-year-rates averaged 4.30 percent.
• 15-year fixed-rate mortgages: averaged 3.38 percent, with an average 0.5 point, increasing from last week’s 3.36 percent average. A year ago, 15-year rates averaged 3.52 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.39 percent, with an average 0.3 point, increasing from last week’s 3.36 percent average. A year ago, 5-year ARMs averaged 3.32 percent.

Source: Freddie Mac