Fixed mortgage rates hit a 10-month high during the week ended Nov. 17, when the average rate for a 30-year fixed-rate mortgage (FRM) hit 3.94%, up from 3.57% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 3.97%
The average rate for a 15-year FRM was 3.14%, up considerably from 2.88%. A year ago at this time, the 15-year FRM averaged 3.18%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.07%, up from 2.88%. A year ago, the five-year ARM averaged 2.98%.
“Last week’s election fell in the middle of our survey week, making it impossible to determine how closely the mortgage rate would track the post-election sell-off in the Treasury market,” explains Sean Becketti, chief economist for Freddie Mac, in a statement. “This week, the verdict is in – over the last two weeks the 30-year mortgage rate jumped 40 basis points to 3.94 percent, almost identical to the 39 basis point increase in the 10-year Treasury yield. If rates stick at these levels, expect a final burst of home sales and refinances as ‘fence sitters’ try to beat further increases, then a marked slowdown in housing activity.”