Mortgage rates took a significant jump during the week ended March 16, with the average rate for a 30-year, fixed-rate mortgage (FRM) rising to 4.30%, up from 4.21% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 3.73%.
It was the second consecutive week that rates increased. Rates began to increase the previous week in anticipation of the Federal Reserve’s announcement yesterday that it would be increasing the Fed Funds rate by another 0.25%.
The average rate for a 15-year FRM was 3.50%, up from 3.42%. A year ago at this time, the 15-year FRM averaged 2.99%.
The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 3.28%, up from 3.23%. A year ago, the five-year ARM averaged 2.93%.
“As expected, the FOMC announced its first rate hike of 2017 and hinted at additional increases throughout the remainder of the year,” says Sean Becketti, chief economist for Freddie Mac, in a statement. “Although our survey was conducted prior to the Fed’s decision, the release of the February jobs report all but guaranteed a rate hike and boosted the 30-year mortgage rate nine basis points to 4.30 percent this week. Increasing inflation, continued gains in the labor market and the Fed’s intentions for further rate increases – all three will keep pushing mortgage rates up this year.”