Mortgage rates inched up slightly during the week ended Dec. 20, with the average rate for a 30-year fixed rate mortgage (FRM) rising to 3.94%, up from 3.93% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 4.30%.
The average rate for a 15-year FRM was 3.38%, up from 3.36%. A year ago at this time, the 15-year FRM averaged 3.52%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.39%, up from 3.36%. A year ago at this time, the five-year ARM averaged 3.32%.
“Thirty-year fixed mortgage rates have been bouncing around in a narrow 10 basis points range since October,” says Len Kiefer, deputy chief economist for Freddie Mac, in a statement. “The U.S. average 30-year fixed mortgage rate increased one 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,” Kiefer adds. “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.”