On the week following the US elections, mortgage rates spiked up, pulling the conventional 30-year fixed-rate mortgage (FRM) to a new threshold.
According to Freddie Mac’s recent Primary Mortgage Market Survey, 30-year FRM topped 4 percent, a first since 2015. Meanwhile, 10-year Treasury yield also increased a likely telltale that mortgage rates would continue its march forward.
Conventional 30-year FRM averaged 4.03 percent on the week ending November 23. A 9 basis-point jump from last week’s 3.94 percent. During the same time a year ago, the median was at 3.95 percent.
The 15-year fixed rate mortgage averaged 3.25 percent this week, another increase from the previous week’s 3.14 percent. Last year’s average at the same time was 3.18 percent.
Meanwhile, 5-year Treasury-indexed hybrid adjustable rate mortgage reached an average of 3.12 percent. Last week, it was 3.07 percent. This increased as well from 2015’s 3.01 percent.
The current 30-year FRM record is the highest since 2016.
Mortgage rates are foreseen to take an upward momentum, especially with the policy changes supposed under the president-elect’s administration. With this factor in effect, it is thought that it would require another significant socio-political event (case in point: Brexit) to bring the rates back down.