The Dow wasn’t the only thing that increased this week as mortgage rates broke free from their three-week downward trend. However, low housing supply continues to plague the market.
“The 2.8% decline in existing home sales in December is a reminder of the lack of homes for sale,” Freddie Mac Chief Economist Sean Becketti said. “According to the National Association of Realtors, supply is at its lowest level since 1999, a factor that should support higher house prices regardless of the oscillations of the mortgage rate.”
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(Source: Freddie Mac)
The 30-year fixed-rate mortgage increased to 4.19% for the week ending Jan. 26, 2017. This is an increase from last week’s 4.09% and from last year’s 3.79%.
The 15-year FRM also increased to 3.4%, up from 3.34% last week and from 3.07% last year.
However, the five-year Treasury-indexed hybrid adjustable-rate mortgage decreased slightly to 3.2%. This is down from 3.21% last week but still up from last year’s 2.9%.
“The 10-year Treasury yield increased more than 10 basis points this week,” Becketti said. “The 30-year mortgage rate moved up as well to 4.19%, a 10 basis point jump. This week marks the first increase in the mortgage rate since Dec. 29.”