Freddie Mac: Fixed Mortgage Rates Inched Above 4.0%

Posted by Patrick Barnard on January 04, 2016 No Comments
Categories : Residential Mortgage

Fixed mortgage rates increased slightly during the week ended Dec. 31, with the 30-year fixed-rate mortgage rising to above 4.0% for the first time in five months, according toFreddie Mac’s Primary Mortgage Market Survey.

The average rate for a 30-year fixed-rate mortgage (FRM) was 4.01%, up from 3.96% the previous week. A year ago at this time, the 30-year FRM averaged 3.87%.

The average rate for a 15-year FRM was 3.24%, up from 3.22%. A year ago at this time, the 15-year FRM averaged 3.15%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.08%, up from 3.06%. A year ago, the five-year ARM averaged 3.01%.

The average rate for a one-year Treasury-indexed ARM was 2.68%, unchanged from the previous week. At this time last year, the one-year ARM averaged 2.40%.

“In the final week of 2015, Treasury yields jumped reacting in part to strong consumer confidence in December,” says Sean Becketti, chief economist, Freddie Mac, in a statement. “In response, the 30-year mortgage rate rose five basis points to 4.01 percent, ending a five-month span below four percent.

“After averaging 3.9 percent in the fourth quarter of 2015, we expect the 30-year mortgage rate to average 4.7 percent for the fourth quarter of 2016,” Becketti adds.

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