Mortgage rates this week reached their lowest level so far in 2017, but are highly likely to increase over the next few days, according to Freddie Mac.
The 30-year fixed rate mortgage averaged 3.88%, down two basis points from last week's 3.9%. The last time rates for the 30-year were lower was the week ended Nov. 10, 2016. For this same week last year, the average rate was 3.48%.
"The majority of our survey was conducted prior to Tuesday's sell-off in the bond market which drove Treasury yields higher," said Freddie Mac Chief Economist Sean Becketti. "Mortgage rates may increase in next week's survey if Treasury yields continue to rise."
Between 4:05 a.m. on Tuesday and 10:45 a.m. on Thursday, yields on the 10-year Treasury increased 15.7 basis points to 2.286%. Movements in the 10-year Treasury yield influence pricing of 30-year fixed rate mortgages.
The 15-year fixed-rate mortgage averaged 3.17%, unchanged from last week. A year ago at this time, the 15-year averaged 2.78%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.17%, up from last week when it averaged 3.14%. At this time last year, it averaged 2.70%.