Mortgage Rates Jump Up after 10-week Low

Anticipation grows for December rate hike

money

Mortgage rates moved up this week as more of the market begins to anticipate an upcoming rate hike.

“This week the 10-year Treasury yield continued its climb as an increasing number of financial market participants foresee a December rate hike after a series of positive economic data releases,”Freddie Mac Chief Economist Sean Becketti said. “The 30-year fixed-rate mortgage moved up 5 basis points to 3.47% in this week’s survey, the first increase in one month.”

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10-13-16

(Source: Freddie Mac)

The 30-year fixed-rate mortgage increased to 3.47% for the week ending Oct. 13, 2016. This is up from last week’s ten-week low of 3.42%, but still down from last year’s 3.82%.

The 15-year FRM also increased to 2.76%, up from last week’s 2.72%. It is still down from last year’s 3.03%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage increased slightly to 2.82%, up from last week’s 2.8% but down from last year’s 2.88%.

“Even though we’ve seen economic activity pick up, consumer price inflation and implied inflation expectations remain below the Federal Reserve’s 2% target,” Becketti said.

The Federal Open Market Committee released its minutes Wednesday, showing that in September’s meeting there was division between members who wanted a rate hike and those who took a more cautious approach.

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