Mortgage Rates Rise In Anticipation Of December Fed Rate Hike

Mortgage rates ticked higher during the week ended Oct. 13, according to Freddie Mac’s Primary Mortgage Market Survey.

The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.47%, up from the previous week, when it averaged 3.42%. A year ago at this time, the 30-year FRM averaged 3.82%.

The average rate for a 15-year FRM was 2.76%, up from 2.72%. A year ago at this time, the 15-year FRM averaged 3.03%.

The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.82%, up from 2.80%. A year ago, the five-year ARM averaged 2.88%.

“This week, the 10-year Treasury yield continued its climb as an increasing number of financial market participants foresee a December rate hike after a series of positive economic data releases,” said Sean Becketti, chief economist for Freddie Mac, in a release. “The 30-year, fixed-rate mortgage moved up five basis points to 3.47% in this week’s survey – the first increase in one month. Even though we’ve seen economic activity pick up, consumer price inflation and implied inflation expectations remain below the Federal Reserve’s two percent target.”


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