Fixed-rate mortgages are climbing following a post-selection sell-off in the Treasury Market.
“Last week’s election fell in the middle of our survey week, making it impossible to determine how closely the mortgage rate would track the post-election sell-off in the Treasury market,” says Sean Becketti, Freddie Mac’s chief economist. “This week, the verdict is in — over the last two weeks the 30-year mortgage rate jumped 40 basis points to 3.94 percent, almost identical to the 39 basis point increase in the 10-year Treasury yield. If rates stick at these levels, expect a final burst of home sales and refinances as ‘fence sitters’ try to beat further increases, then a marked slowdown in housing activity.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 17:
- 30-year fixed-rate mortgages: averaged 3.94 percent, with an average 0.5 point, rising from last week’s 3.57 percent average. Last year at this time, 30-year rates averaged 3.97 percent.
- 15-year fixed-rate mortgages: averaged 3.14 percent, with an average 0.5 point, increasing from last week’s 2.88 percent average. A year ago, 15-year rates averaged 3.18 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 3.07 percent, with an average 0.4 point, rising from last week’s 2.88 percent average. A year ago, 5-year ARMs averaged 2.98 percent.
Source: Freddie Mac