Interest rates increased this week more than they have in past five months, according to Freddie Mac’s Primary Mortgage Market Survey. Rates reached their highest level since September as speculation mounts the Federal Reserve will raise interest rates in December.
After Fed Chairman Janet Yellen testified on Capitol Hill last week that the Fed is prepared to raise the overnight rate in December, bond markets, which include the mortgage-backed securities, began adjusting for that outlook.
"Treasury yields climbed nearly 20 basis points over the past week, capturing the market movement following last week's FOMC (Federal Open Market Committee) meeting. 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. 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,” said Sean Becketti, chief economist, Freddie Mac
- 30-year fixed-rate mortgage (FRM) averaged 3.87 percent with an average 0.6 point for the week ending November 5, 2015, up from last week when it averaged 3.76 percent. A year ago at this time, the 30-year FRM averaged 4.02 percent.
- 15-year FRM this week averaged 3.09 percent with an average 0.6 point, up from last week when it averaged 2.98 percent. A year ago at this time, the 15-year FRM averaged 3.21 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent this week with an average 0.4 point, up from last week when it averaged 2.89 percent. A year ago, the 5-year ARM averaged 2.97 percent.
- 1-year Treasury-indexed ARM averaged 2.62 percent this week with an average 0.2 point, up from 2.54 percent last week. At this time last year, the 1-year ARM averaged 2.45 percent.