Mortgage Rates Keep Rising

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.”