Fixed mortgage rates inched up slightly this past week on news that the Fed might finally raise interest rates come December, according to Freddie Mac's Primary Mortgage Market Survey.
However, fixed rates remain at around 4.00%. For the week ended Nov. 5, the average rate for a 30-year fixed-rate mortgage (FRM) was 3.87%, up from 3.76% the previous week. A year ago at this time, the 30-year FRM averaged 4.02%.
The average rate for a 15-year FRM was 3.09%, up from 2.98% the week prior. A year ago at this time, the 15-year FRM averaged 3.21%.
The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.96%, up from 2.89%. A year ago, the five-year ARM averaged 2.97%.
The average rate for a one-year, Treasury-indexed ARM was 2.62%, up from 2.54%. At this time last year, the one-year ARM averaged 2.45%.
All rates are based on closings.
‘Treasury yields climbed nearly 20 basis points over the past week, capturing the market movement following last week's Federal Open Market Committee [FOMC] meeting,’ says Sean Becketti, chief economist for Freddie Mac, in a release. ‘In response, the 30-year mortgage rate experienced its largest increase since June – up 11 basis points to 3.87 percent.
‘Recent commentary suggests interest rates may rise in the near future,’ Becketti adds. ‘Janet Yellen referred to a December rate hike as a 'live possibility' if incoming information supports it. The October jobs report to be released this Friday will be one crucial factor influencing the FOMC's decision.’