Long-term mortgage rates climbed to the highest level so far this year, have increased for four weeks in a row now and are expected to rise further.
During the week ended Nov. 23, thirty-year fixed rates averaged 4.03 percent, according to Freddie Mac’s Primary Mortgage Market Survey.
The latest average marks the first time this year it was above 4 percent and the highest level since it was 4.04 percent in the week ended July 23, 2015.
Thirty-year fixed rates on residential loans were 3.94 percent the previous week. The 30 year has increased each week since the week ended Oct. 27, when the average was 3.47 percent.
The average 30-year rate was 3.95 percent in the week ended Nov. 25, 2015.
Mortgage Daily’s analysis of Treasury market activity points to an increase of around 4 BPS on fixed rates in Freddie’s next survey.
Panelists surveyed by Bankrate.com for the week Nov. 23 to Nov. 30 offered no insight into where rates are headed and were evenly split over whether rates would rise at least 3 BPS, fall or remain unchanged over the next week.
In its Housing Forecast: November 2016, Fannie Mae predicted that 30-year fixed rates would average 3.5 percent this quarter and 3.6 percent in the first-half 2017.
The U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended Nov. 18 had the jumbo-conforming spread at a negative 7 BPS, swinging from a positive 6 BPS in the last report.
On 15-year mortgages, fixed rates averaged 3.25 percent in Freddie’s survey, surging 11 BPS from the week ended Nov. 17. The spread between 15- and 30-year rates thinned to 78 BPS from 80 BPS in the previous report.
Freddie said that five-year, Treasury-indexed, hybrid, adjustable-rate mortgages averaged 3.12 percent, rising from 3.07 percent in last week’s report.
Fannie predicts that hybrid ARMs will average 2.9 percent in the fourth quarter of this year then rise to 3.0 percent three months later and 3.1 percent in the second-quarter 2017.
Data from the Department of the Treasury indicate that the yield on the one-year Treasury note closed Wednesday at 0.80 percent, rising from 0.77 percent last Thursday.
The six-month London Interbank Offered Rate was reported by Bankrate.com at 1.27 percent as of Wednesday, the same as seven days prior.
ARM share in the most-recent Mortgage Market Index report was 10.5 percent, widening from 7.7 percent seven days earlier.
