Freddie Mac: Mortgage rates increase again before FOMC meeting

Mortgage & Real Estate

Mortgage rates increased yet again, marking the fifth consecutive week of increases and hitting yet another new high for 2016.

“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% certain of a quarter-point- rate hike,” Freddie Mac Chief Economist Sean Becketti said.

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(Source: Freddie Mac)

The 30-year fixed-rate mortgage increased to 4.13% for the week ending Dec. 8, 2016. This is up from last week’s 4.08% and from last year’s 3.95%.

The 15-year FRM also showed an increase this week to 3.36%, up from 3.34% last week and 3.19% last year.

The five-year Treasury-indexed hybrid adjustable-rate mortgage increased to 3.17%, up slightly from last week’s 3.15%. It is also up from last year’s 3.03%.

“The 10-year Treasury yield dipped this week following the release of the Job Openings and Labor Turnover Survey,” Becketti said. “The 30-year mortgage rate rose another five basis points to 4.13%, starting the month 18 basis points higher than this time last year.”

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