Mortgage rates are continuing to move higher and higher in 2018. It’s a trend that seems to be here to stay for the indefinite future, as the economy strengthens and the Federal Reserve follows through with more increases to the federal funds rate.
If you’re considering taking action on a purchase or refinance, we strongly recommend that you act soon, if possible. Read on for more details.
Where are mortgage rates going?
Rates rise again in Freddie Mac PMMS
We’re moving quickly through another week, and as expected, mortgage rates are inching higher but remaining in a fairly tight range.
Here are the numbers in the latest Freddie Mac Primary Mortgage Market Survey, which got released this morning:
- The average rate on a 30-year fixed rate mortgage rose five basis points up to 4.04% (0.6 points)
- The average rate on a 15-year fixed rate mortgage moved up five basis points to 3.49% (0.5 points)
- The average rate on a 5-year adjustable rate mortgage stayed flat at 3.46% (0.3 points)
This is the first time the average rate on a 30-year fixed has crept over 4.00% since July. Here is what the Freddie Mac Economic & Housing Research Group had to say about rates this week:
“The U.S. weekly average for the 30-year fixed mortgage rate rose above 4 percent for the first time since last summer to 4.04 percent in this week’s survey. This is the highest weekly average for the 30-year fixed rate mortgage since May of 2017.
Some may be wondering if this is the last time we’ll see a three handle on the 30-year mortgage rate. Never say never, but inflation is firming, the Federal Reserve’s Beige Book indicates broad-based economic growth and labor markets are tightening. This means upward pressure on long-term rates, like the 30-year fixed-rate mortgage, is building.”
Lock now while rates are low
Mortgage rates continue to move higher. This is a trend that we expect to stick around for a while now, which is why we’re recommending that borrowers take action on a purchase or refinance, sooner rather than later.
It really only takes a few minutes online to get a free rate quote. Don’t want to deal with an online form? No problem–just give one of our mortgage specialists a call and they can quickly get you started.
Today’s economic data:
- Housing starts for December came in at an annualized rate of 1.192 M.
- Permits came in for December at an annualized rate of 1.192 M.
Applications filed for U.S. unemployment benefits came in at 220,000 for the week of 1/13/18. The four-week moving average is now up to 244,500.
Philadelphia Fed Business Outlook Survey
The Philly Fed General Business Conditions Index moved to a 22.2 in January.
EIA Petroleum Status Report
Notable events this week:
- Nothing: Markets Closed for Martin Luther King Jr. Day
- Empire State Mfg Survey
- Industrial Production
- Housing Market Index
- Beige Book
- Housing Starts
- Jobless Claims
- Philadelphia Fed Business Outlook Survey
- EIA Petroleum Status Report
- Consumer Sentiment
Filed Under: Current Mortgage Rates, Mortgage Interest Rates, Mortgage Rate Trends and Analysis, Mortgage Rates, Rates
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