Freddie Mac: Mortgage Rates Inched Back Up

Posted by Patrick Barnard on March 11, 2016 No Comments
Categories : Residential Mortgage

Although mortgage rates inched back up slightly this past week, it was only the second time this year that they did so. And with the Federal Reserve signaling that it is unlikely to hike the prime rate again until midyear at the earliest, rates are likely to stay near their present lows through the spring home buying season.

For the week ended March 10, the average rate for a 30-year fixed-rate mortgage (FRM) was 3.68%, up slightly from 3.64%, according to Freddie Mac’s Primary Mortgage Market Survey. A year ago at this time, the 30-year FRM averaged 3.86%.

The average rate for a 15-year FRM was 2.96%, up from 2.94%. A year ago at this time, the 15-year FRM averaged 3.10%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.92%, up from 2.84%. A year ago, the five-year ARM averaged 3.01%.

“The 10-year Treasury yield ended the survey week exactly where it started; however, the solid February employment report boosted the yield noticeably on Friday and Monday,” says Sean Becketti, chief economist for Freddie Mac. “Our mortgage rate survey captured the impact of this temporary increase in yield, and the 30-year mortgage rate rose four basis points to 3.68 percent. This marks the second increase this year. Nonetheless, the mortgage rate remains 33 basis points lower than its end-of-2015 level.”

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