Week-to-Week Rate Rise Tame for Now in Freddie Survey
Fixed rates in Freddie Mac’s weekly survey climbed slightly, and the Federal Reserve’s new plan to scale back securitization purchases suggests they will only get higher from here.
The benchmark 10-year Treasury yield as of mid-Thursday morning had risen to levels near 2.93% after approaching lows near 2.83% in the week.
The 10-year yield climbed rapidly after the Fed’s statement about its tapering plan, but the move came at the tail end of Freddie’s survey week.
The average rate for 30-year mortgages was as a result only five basis points higher compared to Freddie’s previous survey week at 4.47%. A year ago it was more than 1% lower.
Fifteen-year mortgages during the most recent survey week were eight basis points higher than the previous week at 3.51%. A year ago their rates were on average 86 basis points lower.
The average rate for a five-year Treasury-indexed hybrid mortgage during the week ending Dec. 19 in Freddie’s survey was just two basis points higher than the previous week at 2.96%. A year ago it was 25 basis points lower.
One-year Treasury ARMs in Freddie’s latest survey were up six basis points from the previous week at 2.57% and just five basis points higher than one year ago.