Fixed Mortgage Rates Move Higher

On a short week following the Christmas holiday, the 10-year Treasury yield was relatively unchanged. The 30-year mortgage rate rose 2 basis points to 4.32 percent, closing the year with nine consecutive weeks of increases. As mortgage rates continue to increase, home sales and affordability will continue to be a concern for housing in 2017.

 

  • 30-year fixed-rate mortgage (FRM) averaged 4.32 percent with an average 0.5 point for the week ending December 29, 2016, up from last week when it averaged 4.30 percent. A year ago at this time, the 30-year FRM averaged 4.01 percent.
  • 15-year FRM this week averaged 3.55 percent with an average 0.5 point, up from last week when it averaged 3.52 percent. A year ago at this time, the 15-year FRM averaged 3.24 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.30 percent this week with an average 0.5 point, down from last week when it averaged 3.32 percent. A year ago, the 5-year ARM averaged 3.08 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

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