Mortgage rates picked up again this week, according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS®), posting the seventh straight week of an increase since surpassing 4 percent for the first time this year. Per the survey, the 30-year fixed-rate mortgage averages 4.16 percent with an average 0.5 point, up from 4.13 percent the week prior. The 15-year fixed-rate mortgage averages 3.37 percent with an average 0.5 point, also up from the week prior at 3.36 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averages 3.19 percent with an average 0.4 point, up from the week prior at 3.17 percent.
The uptick comes following the Federal Reserve’s decision to pull the trigger on raising the key interest rate, though it does not reflect the announcement, which occurred after the survey this week, says Sean Becketti, Freddie Mac’s chief economist.
“As was almost universally expected, the [Federal Open Market Committee] FOMC closed the year with its one and only rate hike of 2016,” Becketti says. “The consensus of the Committee points to more rate hikes in 2017; however, the experience of this year combined with the policy uncertainty that accompanies a new administration suggests a wait-and-see outlook.
“This week’s mortgage rate survey was completed prior to the FOMC announcement,” says Becketti. “The 30-year mortgage rate rose three basis points on the week to 4.16 percent. The MBA’s Applications Survey posted drops in both refinance and purchase applications, registering the impact of recent mortgage rate increases. If rates continue their upward trend, expect mortgage activity to be significantly subdued in 2017.”
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