Mortgage Rates Increase as Holidays Approach

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Mortgage rates edged up this week, with the average rate for a 30-year fixed rate mortgage at 3.73%, up from 3.68% last week, according to Freddie Mac’s Primary Mortgage Market Survey.

That’s still way below the average 30-year rate of 4.63% a year ago.

The average rate for a 15-year fixed-rate mortgage was 3.19%, up from 3.14%.

A year ago at this time, the average rate for a 15-year was 4.07%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.36%, down from 3.39%.

A year ago at this time, the average rate for a five-year ARM was 4.04%.

“With Federal Reserve policy on cruise control and the economy continuing to grow at a steady pace, mortgage rates have stabilized as the market searches for direction,” says Sam Khater, chief economist for Freddie Mac, in a statement. “The risk of an economic downturn has receded and, combined with the very strong job market, it should lead to a slightly higher rate environment.”

Khater adds that although rising mortgage rates can be “deleterious, improved economic sentiment is the reason that these higher rates have not impacted mortgage demand so far.”

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