Mortgage rates jump in response to Fed [Video]
Posted on Monday, November 9, 2015 at 10:42:58 AM
That average rate for a 30-year mortgage made its largest jump since June, Freddie Mac announced on Nov. 5, in anticipation of the Federal Reserve Bank's mid-December meeting.
This year the average rate on a 30-year fixed-rate mortgage has remained below 4 percent for a particularly long stretch - 15 straight weeks - but could rise above that threshold should the Fed decide to raise its benchmark interest rate in December - something that seems likely, according to the Associated Press. The rate of a 30-year mortgage jumped to 3.87 percent from 3.76 percent in Freddie Mac's latest Mortgage Rates Survey after the Fed hinted a possible interest rate increase next month. The average for a 15-year fixed-rate mortgage increased to 3.09 percent from 2.98 percent.
One year ago the average 30-year mortgage rate was 4.02 percent, while the rate for a 15-year mortgage was 3.21 percent. Fed Chair Janet Yellen told Congress that if the economy continues its strong growth the bank will consider hiking up its benchmark interest rate, a move that would affect other rates such as those for mortgages. Yellen's indication that could rates begin rising just before the year ends leaves homebuyers with around a month to lock in low interest rates before they may climb above 4 percent and beyond.