Mortgage rates up for the third week

Long-term momentum is 'clearly upward': Zillow economist

Mortgage rates moved higher for the third week in a row.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average rose to 4.15 percent with an average 0.5 point. (Points are fees paid to a lender equal to one percent of the loan amount.)

It was 4.04 percent a week ago and 4.19 percent a year ago. The 30-year fixed-rate is at its highest level in 10 months.

The 15-year fixed-rate average jumped to 3.62 percent with an average 0.5 point. It was 3.49 percent a week ago and 3.40 percent a year ago.

The five-year adjustable rate average climbed to 3.52 percent with an average 0.4 point. It was 3.46 percent a week ago and 3.20 percent a year ago.

“Mortgage rates have increased decisively in two of the past three weeks, touching their highest levels since March 2017 last week, and the long-term momentum is clearly upward,” said Aaron Terrazas, senior economist at Zillow. “Some of the increase reported late last week may have been associated with the federal government shutdown over the weekend that extended into Monday, which has now been temporarily resolved. Friday’s (fourth quarter) GDP numbers are the most important economic data scheduled for release this week, but markets could also move if ongoing NAFTA negotiations turn sour.”

The yield on the 10-year Treasury escalated to 2.66 percent Monday and has risen 20 basis points since the start of the year. (A basis point is 0.01 percentage point.) Because mortgage rates tend to follow the same path as long-term bond yields, home loan rates also increased., which puts out a weekly mortgage rate trend index, found that more than half the experts it surveyed say rates will increase in the coming week.


“We are finally starting to see some movement in bonds, which has caused interest rates to (move) higher over the past couple of weeks,” said Brett Sinnott, vice president of capital markets at CMG Financial. “Tax reform practices are starting to take shape as businesses and individuals have begun assimilating to the new changes. The U.S. dollar has seen volatility over the past week, which has also contributed to movement across several markets.”

Meanwhile, mortgage applications were up again this week, according to the latest data from the Mortgage Bankers Association. The market composite index — a measure of total loan application volume — increased 4.5 percent from a week earlier. The refinance index inched up one percent, while the purchase index climbed six percent to its highest level since April 2010.



President Donald Trump signaled support Monday for one piece of gun control legislation, five days after a mass shooting at a Florida high school killed 17 people and injured many others.'The president is supportive of efforts to ...

For the first time in a while, investors are betting big on 'big government.'The federal-services market has experienced a jolt of dealmaking activity in recent months as companies position themselves to capture new government spe ...

Give us feedback

Have you found an error or omission in our reporting? Tell us here.

Do you have a story idea we should look into? Tell us here.