Mortgage rates continue to climb after the election, according to new research from Freddie Mac.
Three weeks have passed since the Nov. 8 election, and the Primary Mortgage Market Survey from Freddie Mac has shown that mortgage rates continue to rise. The latest result showed the 30-year fixed-rate mortgage (FRM) at an average of 4.03 percent, up from an average of 3.57 right after the election.
Sean Becketti, the chief economist at Freddie Mac, noted that rates are the highest they’ve been in some time.
“This increase marks the first week since 2015 that mortgage rates have risen above 4 percent,” Becketti said.
Mortgage rates on the rise
The 30-year FRM was not the only loan that saw an increase in rate. Here are the full results of Freddie’s survey:
- The 30-year FRM averaged 4.03 percent with an average 0.5 percent point for the week ending in Nov. 23, 2016. It went up from last week’s 3.94 percent average. In the previous week (ending in Nov. 17), the 30-year FRM went up almost 4o basis points from 3.57 percent to 3.94 percent average. The 30-year FRM last year at this time was 3.95 percent.
- The 15-year FRM averaged 3.25 percent, up from 3.14 percent the previous week. The 15-year FRM averaged 3.18 percent last year at this time.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) went up from last week’s 3.07 percent average to 3.12 percent; the 5-year ARM averaged 3.01 percent a year ago.
The impact of rising mortgage rates
In additional comments in Freddie’s survey, Becketti said that the rising rates could lead to a spur of homebuying.
“The 30-year mortgage rate jumped 40 basis points to 3.94 percent, almost identical to the 39 basis point increase in the 10-year Treasury yield,” he said. “If rates stick at these levels, expect a final burst of home sales and refinances as ‘fence sitters’ try to beat further increases, then a marked slowdown in housing activity.”