Mortgage Rate News Flash!

by on March 30, 2018
By the Otteau Group
As a result of the strengthening economy, mortgage rates have increased for 11 of the past 12 weeks. During the week of March 8th, mortgage rates peaked at 4.46%, its highest level since January of 2014. This week, the 30-year fixed rate mortgage is averaging 4.45%, which is greater than one year ago when it averaged 4.23% (22 basis points less than today). Commitment rates for both the 15-year fixed rate loan and the 5-year ARM also reported slight increases this past week as shown in the table below.
According to Freddie Mac, the Federal Reserve raised interest rates in response to the strengthening of both the US and global economies. This decision to raise interest rates puts the federal funds rate at its highest level since 2008 and caused the 10-year Treasury yield to soar. Despite rate increases, the national housing market remains strong. The NAR reported that existing home sales in February increased 1.1% percent from a year ago.
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