Mortgage rates are on track to finish out the week higher than where they started and we believe that mortgage rates will continue rising in 2018.
According to the latest data by Freddie Mac, the 30-year fixed-rate average climbed to 3.99 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.95 percent a week ago and 4.12 percent a year ago.
The 15-year fixed-rate average grew to 3.44 percent with an average 0.5 point. It was 3.38 percent a week ago and 3.37 percent a year ago. The five-year adjustable rate average ticked up to 3.46 percent with an average 0.4 point. It was 3.45 percent a week ago and 3.23 percent a year ago.
With mortgage rates expected to move higher over the coming weeks and months, it definitely makes sense for most borrowers to try and lock in a rate sooner rather than later.
Mortgage rates typically move in the same direction as the 10-year yield, so rates definitely moved a little higher this week. This is a trend that we’ve been expecting for a while and believe will continue into the near future.
It’s no wonder that mortgage and refinance applications moved higher to start the new year, according to the latest data from the Mortgage Bankers Association.