One week after Freddie Mac chief economist Sean Becketti warned that "if rates continue their upward trend, expect mortgage activity to be significantly subdued in 2017", mortgage rates continued their upward trend. According to the latest update from the mortgage giant, the 30-year fixed reached 31-month highs, touching level not seen since April 2014 in the week after the Fed hiked its interest rate for the second time in the past decade.
The average rate for a 30-year fixed mortgage was 4.3%, up from 4.16% last week, Freddie Mac said in a statement Thursday. The average 15-year rate climbed to 3.52%, the highest since January 2014, from 3.37%.
Mortgage rates have surged since October, when the 30 Year fixed was offered at 3.40%, tracking a jump in Treasury yields on expectations of rising inflation.
Freddie Mac's chief economist Becketti was more sanguine after last week's unexpected warning, saying that “a week after the only rate hike of 2016, the mortgage industry digested the Fed’s decision. Following Yellen's speech last Wednesday, the 10-year Treasury yield rose approximately 10 basis points. The 30-year mortgage rate rose 14 basis points to 4.30 percent, reaching highs we have not seen since April 2014."
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9 comments:
Surge?
Really?
Mortgage rates "surged .i3%? Again, if .13% is going to crush the housing market than there are people that shouldn't even consider buying.
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I believe this article is stating exactly what you stated.
The housing market is being fueled by cheap money (low interest rates).
I agree with you, most people should NOT buy a house at today's prices. Houses are over priced. Incomes have not kept up with house prices generally speaking.
Of course, each individual person is in a different situation.
If a person has most of the money needed, but requires a small loan to make a purchase, then 4% interest is not that bad a rate. That is my opinion.
that is still at historic lows. I do not see anything changing. You would need to get the rate up to 8% at least for that to happen.
No intelligent answer here because of out of control rent.All of my life I've seen these 6 one way half a dozen the other dilemmas.I always buy because I stay put & have no need or desire to ever move unless my home value appreciates drastically.Then moving is pointless because whatever I buy has skyrocketed as well.
Yaaay! More life-sucking landlords!! And more Section 8 housing!
How could we not be more pleased?
When I purchased my first house the mortgage rate was 11.5%
Any of you carrying credit card balances? Look at the rate your paying for that and credit card interest is not tax deductable
The market is surging due to confidence in a Trump economy.
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