The Fed’s rate hike that was announced on Wednesday had no immediate impact on mortgage rates, which were basically flat during the week ended Dec. 14, according to Freddie Mac’s Primary Mortgage Market Survey.
The average rate for a 30-year fixed-rate mortgage (FRM) was 3.93%, down slightly from 3.94% percent. A year ago at this time, the 30-year FRM averaged 4.16%.
The average rate for a 15-year FRM this week was 3.36% – same as last week. A year ago at this time, the 15-year FRM averaged 3.37%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.36%, up from 3.35%. A year ago at this time, the five-year ARM averaged 3.19%.
“As widely expected, the Fed increased the federal funds target rate this week for the third time in 2017,” says Len Kiefer, deputy chief economist for Freddie Mac, in a statement. “The market had already priced in the rate hike, so long-term interest rates, including mortgage rates, hardly moved. Mortgage rates held relatively flat across the board, with the 30-year fixed mortgage rate inching down one basis point to 3.93 percent in this week’s survey. Mortgage rates have been in a holding pattern for the fourth quarter, remaining within a 10-basis-point range since October.”