Freddie Mac: Mortgage rates return to pre-Brexit levels

Mortgage interest rates rose for the second week in a row to their highest level in four months, now hitting pre-Brexit levels.

“This is the first week in over 4 months that rates have risen above 3.5%,” Freddie Mac Chief Economist Sean Becketti said. “This month, mortgage rates seem to be catching up to Treasury yields and returning to pre-Brexit levels.”

Just before Brexit, the 30-year mortgage rate averaged 3.56%, then plummeted to below 3.5% after Brexit and remained there since. Until now, that is.

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(Source: Freddie Mac)

The 30-year fixed-rate mortgage shot up to 3.52% for the week ending Oct. 20, 2016. This is up from last week’s 3.47% but down from last year’s 3.79%.

The 15-year FRM increased to 2.79%, up from 2.76% last week but still down from last year’s 2.98%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage increased to 2.85%. This is up from last week’s 2.82% but down from last year’s 2.89%.

“The 30-year fixed-rate mortgage moved a solid five basis points to 3.52% while the 10-year Treasury yield remained relatively flat,” Becketti said.

Article source: http://www.housingwire.com/articles/38328-freddie-mac-mortgage-rates-return-to-pre-brexit-levels

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