Average fixed mortgage rates climbed again for the eighth week in a row following the Federal Reserve’s decision to raise the key rate, according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS®), with the 30-year fixed-rate averaging 4.30 percent with an average 0.5 point—up from last week’s 4.16 percent.
“A week after the only rate hike of 2016, the mortgage industry digested the Fed’s decision and this week’s survey reflects that response,” says Sean Becketti, chief economist at Freddie Mac. “Following Yellen’s speech last Wednesday, the 10-year Treasury yield rose approximately 10 basis points. The 30-year mortgage rate rose 14 basis points to 4.30 percent, reaching highs we have not seen since April 2014.”
The 15-year fixed-rate, according to the Survey, averages 3.52 percent with an average 0.5 point, also up from last week’s 3.37 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage moved up, in addition, to an averages3.32 percent with an average 0.4 point.
Average mortgage rates exceeded 4 percent for the first time this year after the election. The Fed expects to raise the key rate three more times in 2017.
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