Mortgage Rates Swing Up

Mortgage rates are closing the year on an upward swing, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS) for the week ending Dec. 28.

 

The 30-year fixed-rate mortgage (FRM) averaged 3.99 percent, up from last week when it averaged 3.94 percent. A year ago at this time, the 30-year FRM averaged 4.32 percent. The 15-year FRM this week averaged 3.44 percent, up from last week when it averaged 3.38 percent. A year ago at this time, the 15-year FRM averaged 3.55 percent. And the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.47 percent this week, up from last week when it averaged 3.39 percent. A year ago at this time, the 5-year ARM averaged 3.30 percent.

 

“Although this week's survey rate represents a five-month high, 30-year fixed mortgage rates are still below the levels we saw at the end of last year and early part of 2017,” said Len Kiefer, Deputy Chief Economist at Freddie Mac. “Mortgage rates have remained relatively low all year.”

 

Separately, the Federal Housing Finance Agency (FHFA) reported interest rates on conventional purchase-money mortgages increased from October to November. Most notably, the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 4.05 percent for loans closed in late November, up 7 basis points from 3.98 percent in October, while the average interest rate on all mortgage loans was 4.03 percent, up six basis points from 3.97 in October. The average interest rate on conventional, 30-year, fixed-rate mortgages of $424,100 or less was 4.17 percent, up 6 basis points from 4.11 in October. And the effective interest rate on all mortgage loans was 4.06 percent in November, up five basis points from 4.01 in October. The average loan amount for all loans was $307,800 in November, up $300 from $307,500 in October.

---