Home >> Daily Dose >> Digging Into Mortgage Rates
Print This Post Print This Post

Digging Into Mortgage Rates

rates-bhFreddie Mac released the results of its Primary Mortgage Market Survey Thursday, revealing that 30-year fixed-rate mortgages have reached its highest mark in six weeks.

"After holding steady last week, rates ticked up this week,” Freddie Mac Chief Economist Sean Becketti said. “The 10-year Treasury yield rose eight basis points, while the 30-year mortgage rate increased two basis points to 3.85 percent."

Last week, 30-year fixed rate mortgage rates averaged 3.83 percent, which was at 3.42 percent this time in 2016. 15-year fixed-rate mortgages averaged 3.15 percent with an average 0.5 point, an increase from last week when the 15-year FRM sat at 3.13 percent. In early October 2016, the rate averaged 2.72 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 3.18 percent with an average 0.4 point. This was a slight decrease from last week when it averaged 3.20 percent and an increase from this time last year when it averaged 2.80 percent.

According to an article in the Wall Street Journal, mortgage rates are expected to increase as the Fed begins winding down its balance sheet—likely hiking its benchmark rate later this year.

Though a survey by Bankrate said nearly two-thirds of respondents said rates will remain relatively stable next week, Michael Becker, Branch Manager at Sierra Pacific Mortgage expects rates to decrease.

“Friday’s employment report should be on the weak side, partly because of the effects of Hurricanes Harvey and Irma, and partly because job growth has been slowing recently,” Becker told Bankrate. “This should support lower Treasury yields and mortgage rates in the coming week.”

About Author: Brianna Gilpin

Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation's leading diversified media and information services companies. To contact Gilpin, email [email protected].
x

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.