Putting Mortgage Rates Into Perspective

Though mortgage rates moved higher again this week, borrowers should still appreciate how low they are — because they're likely to increase further. Despite nine consecutive weeks of rises in mortgage rates, the annual average for the 30-year fixed-rate mortgage was 3.65 percent in 2016 — the lowest annual average ever recorded by Freddie Mac.

"On a short week following the Christmas holiday, the 10-year Treasury yield was relatively unchanged," notes Sean Becketti, Freddie Mac's chief economist. "The 30-year mortgage rate rose 2 basis points to 4.32 percent, closing the year with nine consecutive weeks of increases. As mortgage rates continue to increase, home sales and affordability will continue to be a concern for housing in 2017."
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Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 29:

• 30-year fixed-rate mortgages: averaged 4.32 percent, with an average 0.5 point, up from last week's 4.30 percent average. Last year at this time, 30-year rates averaged 4.01 percent.
• 15-year fixed-rate mortgages: averaged 3.55 percent, with an average 0.5 point, up from last week's 3.52 percent average. A year ago, 15-year rates averaged 3.24 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.30 percent, with an average 0.5 point, dropping from last week's 3.32 percent average. A year ago, 5-year ARMs averaged 3.08 percent.

Source: realtormag.realtor.org