Mortgage Rates Keep Rising

Dec 29, 2016

Average fixed mortgage rates were on the rise for the ninth consecutive week, according to Freddie Mac’s latest Primary Mortgage Market Survey (PMMS).

The 30-year fixed-rate mortgage (FRM) averaged 4.32 percent for the week ending Dec. 29, up from last week when it averaged 4.30 percent. The 15-year FRM this week averaged 3.55 percent, up from last week when it averaged 3.52 percent. However, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.30 percent this week, down from last week when it averaged 3.32 percent. A year ago, the five-year ARM averaged 3.08 percent.

Sean Becketti, chief economist at Freddie Mac, greeted the news with a tinge of pessimism.

“On a short week following the Christmas holiday, the 10-year Treasury yield was relatively unchanged,” Becketti said. “As mortgage rates continue to increase, home sales and affordability will continue to be a concern for housing in 2017.”

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Phil Hall

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Dec 29, 2016

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