2016 Home Loan Rates to Stay Near Record Lows

Mortgage rates edged slightly higher for the second consecutive week.

“We take the Fed at its word that monetary tightening in 2016 will be gradual, and we expect only a modest increase in longer-term rates. Mortgage rates will tick higher but remain at historically low levels in 2016,” says Sean Becketti, Freddie Mac’s economist.

Freddie Mac reports the following mortgage rates for the week ending Dec. 17:

  • 30-year fixed-rate mortgages: averaged 3.97 percent, with an average 0.6 point, rising from last week’s 3.95 percent average. A year ago, 30-year rates averaged 3.80 percent.
  • 15-year fixed-rate mortgages: averaged 3.22 percent, with an average 0.5 point, increasing from last week’s 3.19 percent average. Last year at this time, 15-year rates averaged 3.09 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.03 percent, with an average 0.4 point, holding the same average as last week. A year ago, 5-year ARMs averaged 2.95 percent.

Source: Freddie Mac