30-year rate decreases even after Fed raises rates
Mortgage rates tumbled even after the Federal Open Market Committee elected to raise rates last week, experiencing the greatest weekly drop in months.
“This marks the greatest week-over-week decline for the 30-year mortgage rate in over two months, a stark contrast from last week’s jump following the FOMC announcement,” Freddie Mac Chief Economist Sean Becketti said.
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(Source: Freddie Mac)
The 30-year fixed-rate mortgage dropped seven basis points to 4.23% for the week ending March 23, 2017. This is down from last week’s 4.3% but up from last year’s 3.71%.
The 15-year FRM also decreased, falling to 3.44%, down from last week’s 3.5%. However, it remained higher than last year’s 2.96%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage decreased from last week’s 3.28% to 3.24% this week. It remains up from last year’s 2.89%.
“The 10-year Treasury yield fell about 10 basis points this week. The 30-year mortgage rate moved with Treasury yields and dropped seven basis points to 4.23%,” Becketti said.