Today's Mortgage Rates Creep Higher

Chris Montcalmo's picture
Today's mortgage rates from a mortgage broker

Today's mortgage rates have begun to increase across the U.S. as analysts begin to weigh the possibility of a potential Fed rate hike, according to mortgage giant Freddie Mac.

Speaking last Wednesday, Federal Reserve Chair Janet Yellen formalized the possibility of a rate hike next month.

The Fed expects “the economy will continue to grow at a pace that’s sufficient to generate further improvements in the labor market and to return inflation to our 2% target over the medium term, and if the incoming information supports that expectation, then our statement indicates that December would be a live possibility,” Ms. Yellen said while testifying before the House Financial Services Committee. “But importantly, we’ve made no decision about it.”

The 30-year fixed-rate mortgage averaged 3.87 percent for the week ending November 5, 2015, up from last week when it averaged 3.76 percent. A year ago at this time, the 30-year FRM averaged 4.02 percent.

The 15-year FRM this week averaged 3.09 percent, up from last week when it averaged 2.98 percent. A year ago at this time, the 15-year FRM averaged 3.21 percent.

The 5-year Treasury-indexed hybrid ARM averaged 2.96 percent this week, up from last week when it averaged 2.89 percent. A year ago, the 5-year ARM averaged 2.97 percent.

The 1-year Treasury-indexed ARM averaged 2.62 percent, up from 2.54 percent last week. At this time last year, the 1-year ARM averaged 2.45 percent.

“Treasury yields climbed nearly 20 basis points over the past week, capturing the market movement following last week’s FOMC meeting. In response, the 30-year mortgage rate experienced its largest increase since June, up 11 basis points to 3.87%,”said Sean Becketti, Freddie Mac’s chief economist.

“Recent commentary suggests interest rates may rise in the near future. Janet Yellen referred to a December rate hike as a ‘live possibility’ if incoming information supports it. The October jobs report to be released this Friday will be one crucial factor influencing the FOMC’s decision,” Becketti added.

Chris Montcalmo
NMLS ID 943752
Mortgage Consultant
Sierra Pacific Mortgage

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