Mortgage Rates Rise In Anticipation Of December Fed Rate Hike

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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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