Freddie Mac released its Primary Mortgage Market Survey (PMMS) Thursday. According to Len Kiefer, Deputy Chief Economist at Freddie Mac, rates collectively moved up following a rise in Treasury yields.
"After dipping slightly last week, Treasury yields surged this week amidst sell-offs in the bond market,” said Kiefer. “The 10-year Treasury yield, for instance, reached its highest point since March of last year.”
Kiefer continued, “Mortgage rates followed Treasury yields and ticked up modestly across the board."
The 30-year fixed mortgage (FRM) rate averaged 3.99 percent with an average 0.5 point for the week ending on January 11, 2018, which is up from last week at 3.95 percent. However, this represents a year-over-year decrease where in January 2017 the 30-year FRM averaged 4.12 percent.
The 15-year FRM averaged 3.44 percent with an average 0.5 point, an increase from last week’s 3.38 percent. In January of last year, the average for the 15-year FRM was 3.37 percent.
Additionally, the 5-year Treasury-Indexed hybrid adjustable-rate mortgage (ARM) averaged 3.46 percent with an average 0.4 point this week—representing a rise from last week when it averaged 3.45 percent and at the same time last year, the 5-year ARM averaged 3.23 percent.
To reflect the total upfront cost of obtaining a mortgage, average commitment rates should be reported along with average fees. Closings costs may still need to be paid by borrowers, which are not included in the survey. A full list of definitions from Freddie Mac can be viewed here.
To see the full graph of data, click here.