Mortgage rates have reached their peak to date this year in the week leading up to the expected rise in the key interest rate, with the 30-year fixed-rate mortgage averaging 4.13 percent, according to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®). The key rate, which the Federal Reserve will determine action on next week, generally informs the movement of mortgage rates. Analysts widely anticipate an increase in the rate, despite initial claims to the contrary after the election.
“The 10-year Treasury yield dipped this week following the release of the Job Openings and Labor Turnover Survey,” says Sean Becketti, chief economist, Freddie Mac. “The 30-year mortgage rate rose another five basis points to 4.13 percent, starting the month 18 basis points higher than this time last year. As rates continue to climb and the year comes to a close, next week’s FOMC meeting will be the talk of the town, with the markets 94 percent certain of a quarter-point rate hike.”
The 15-year fixed-rate mortgage, in addition, moved higher, averaging 3.36 percent with an average 0.5 point, according to the survey. The 5-year Treasury-indexed hybrid adjustable-rate mortgage, as well, rose to an average 3.17 percent with an average 0.5 point.
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