Mortgage rates jumped in the week following the Federal Reserve’s decision to raise rates, hitting a high not seen since 2014.
“A week after the only rate hike of 2016, the mortgage industry digested the Fed’s decision and this week’s survey reflects that response,” Freddie Mac Chief Economist Sean Becketti said. “Following Yellen’s speech last Wednesday, the 10-year Treasury yield rose approximately 10 basis points.”
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(Source: Freddie Mac)
The 30-year fixed-rate mortgage jumped a full 14 basis points to 4.3% for the week ending Dec. 22, 2016. This is up from last week’s 4.16%, and from last year’s 3.96%.
The 15-year FRM increased to 3.52% this week, up from 3.37% last week and 3.22% last year.
Finally, the five-year Treasury-indexed hybrid adjustable-rate mortgage increased to 3.32%, up from 3.19% last week and 3.06% last year.
“The 30-year mortgage rate rose 14 basis points to 4.3%, reaching highs we have not seen since April 2014,” Becketti said.
And it doesn’t look like it will stop anytime soon. The Fed could be much more hawkish in 2017 and plans to raise rates three times in the year to come.