After the Federal Reserve elected to increase the federal funds rate for the final time in 2017, mortgage rates hardly moved as they had already priced in the increase, according to Freddie Mac’s Primary Mortgage Market Survey.
“As widely expected, the Fed increased the federal funds target rate this week for the third time in 2017,” said Len Kiefer, Freddie Mac deputy chief economist. “The market had already priced in the rate hike so long term interest rates, including mortgage rates hardly moved.”
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(Source: Freddie Mac)
The 30-year fixed-rate mortgage decreased slightly to 3.93% for the week ending December 14, 2017. This is down from last week’s 3.94% and from 4.16% last year.
The 15-year FRM didn’t move at all from last week, hovering at 3.36%, and inched down just slightly from 3.37% last year.
The five-year Treasury-indexed hybrid adjustable-rate mortgage increased slightly from last week’s 3.35% and last year’s 3.19% to 3.36% this week.
“Mortgage rates held relatively flat across the board, with the 30-year fixed mortgage rate inching down one basis point to 3.93% in this week’s survey,” Kiefer said. “Mortgage rates have been in a holding pattern for the fourth quarter, remaining within a 10 basis point range since October.”