Mortgage rates ticked up slightly during the week ended Dec. 10 on a better-than-expected November employment report and the possibility that the Fed will move to raise interest rates later this month.
According to Freddie Mac's Primary Mortgage Market Survey, the average rate for a 30-year, fixed-rate mortgage (FRM) was 3.95%, up from 3.93% the previous week. A year ago at this time, the 30-year FRM averaged 3.93%.
The average rate for a 15-year FRM was 3.19%, up from 3.16% the previous week. A year ago at this time, the 15-year FRM averaged 3.20%.
The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 3.03%, up from 2.99%. A year ago, the five-year ARM averaged 2.98%.
The average rate for a one-year, Treasury-indexed ARM was 2.64%, up from 2.61%. At this time last year, the one-year ARM averaged 2.40%.
‘The economy added 211,000 new jobs in November, exceeding analysts' expectations, and the prior two months were revised higher, as well,’ says Sean Becketti, chief economist for Freddie Mac, in a release. ‘This momentum is likely to cement a decision by the Fed to begin raising interest rates this month. Following the release of the employment report, Treasuries rose seven basis points, and in response, the 30-year mortgage rate ticked up two basis points to 3.95 percent.’