Borrowers Face Higher Mortgage Rates
For the second consecutive week, mortgage rates were on the rise. “As expected, the [Federal Reserve’s Federal Open Market Committee] announced its first rate hike of 2017 and hinted at additional increases throughout the remainder of the year,” says Sean Becketti, Freddie Mac’s chief economist. “Although our survey was conducted prior to the Fed’s decision, the release of the February jobs report all but guaranteed a rate hike and boosted the 30-year mortgage rate 9 basis points to 4.30 percent this week. Increasing inflation, continued gains in the labor market and the Fed’s intentions for further rate increases—all three will keep pushing mortgage rates up this year.”
Freddie Mac reports the following national averages with mortgage rates for the week ending March 16:
- 30-year fixed-rate mortgages averaged 4.30 percent, with an average 0.5 point, rising from last week’s 4.21 percent average. A year ago, 30-year rates averaged 3.73 percent.
- 15-year fixed-rate mortgages averaged 3.50 percent, with an average 0.5 point, increasing from last week’s 3.42 percent average. Last year at this time, 15-year fixed-rate mortgages averaged 2.99 percent.
- 5-year hybrid adjustable-rate mortgages averaged 3.28 percent, with an average 0.4 point, increasing from last week’s 3.23 percent average. Last year at this time, 5-year ARMs averaged 2.93 percent.
Source: Freddie Mac