Mortgage Rates: Is It a ‘Year Full of Surprises’?

Interesting thought of the week with this real estate opinion:  “For the last 46 years, the 30-year mortgage rate has been almost perfectly correlated with the yield on the 10-year Treasury, but not this year,” says Sean Becketti, Freddie Mac’s chief economist. “From Dec. 29, 2016, through today, the 30-year mortgage rate fell 17 basis points to this week’s reading of 4.15 percent. In contrast, the 10-year Treasury yield began and ended the same period at 2.49 percent. While we expect mortgage rates to fall into line with Treasury yields shortly, this just may be a year full of surprises.”

Freddie Mac reported the following national averages for the week ending Feb. 16:

  • 30-year fixed-rate mortgages: averaged 4.15 percent, with an average 0.5 point, dropping from last week’s 4.17 percent average. Last year at this time, 30-year rates averaged 3.65 percent.
  • 15-year fixed-rate mortgages: averaged 3.35 percent, with an average 0.5 point, falling from last week’s 3.39 percent average. A year ago, 15-year rates averaged 2.95 percent.

Source: Freddie Mac

Mortgage Rates Lower Again Last Week

After absorbing a mixed December jobs report; the 10-year Treasury yield fell 8 basis points. The 30-year mortgage rate moved in tandem with Treasury yields falling 8 basis points to 4.12 percent, the second decline since the presidential election. The December jobs report showed 156,000 jobs added, barely meeting many experts’ expectations, while wage growth was at the high end of expectations at 0.4 percent. If strong wage gains persist, they may push inflation and interest rates higher.

Freddie Mac reports the following national averages for the week ending Jan. 12:

30-year fixed-rate mortgage (FRM) averaged 4.12 percent with an average 0.5 point for the week ending January 12, 2017, down from last week when it averaged 4.20 percent.

15-year FRM this week averaged 3.37 percent, down from last week when it averaged 3.44 percent.

Source: Freddie Mac