Mortgage Rates Remain Flat

Yesterday’s news of a Federal Reserve rate hike was followed by today’s news of mostly stagnant mortgage rate activity, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS).

 

The 30-year fixed-rate mortgage (FRM) averaged 3.93 percent for the week ending Dec. 14, 2017, down very slightly from last week when it averaged 3.94 percent. The 15-year FRM this week averaged 3.36 percent, the same as last week. And the five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.36 percent this week, barely up from when it averaged 3.35 percent last week.

 

“As widely expected, the Fed increased the federal funds target rate this week for the third time in 2017,” said Len Kiefer, Deputy Chief Economist at Freddie Mac. “The market had already priced in the rate hike so long-term interest rates, including mortgage rates hardly moved. Mortgage rates held relatively flat across the board, with the 30-year fixed mortgage rate inching down one basis point to 3.93 percent in this week's survey. Mortgage rates have been in a holding pattern for the fourth quarter, remaining within a 10-basis-point range since October.”

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