For second week in a row, mortgage rates climbed
Posted on Thursday, November 12, 2015 at 10:30:16 AM
Amid market expectations of a likely rate hike by the Federal Reserve in December, as well as a better than predicted jobs report, average fixed mortgage rates climbed slightly for the second week in a row. According to a press release from Freddie Mac, the results of its Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage climbed from 3.87 percent last week to an average 3.98 percent this week. At this time in Nov. 2014, the 30-year FRM averaged 4.01 percent.
"A surprisingly strong October jobs report showed 271,000 jobs added and wage growth of 0.4 percent from last month, exceeding many experts' expectations. The positive employment reports pushed Treasury yields about 2.3 percent as investors responded by placing a higher likelihood on a December rate hike," said Sean Becketti, Freddie Mac's chief economist. "There is only one more employment report before the December FOMC meeting, which will have major implications on whether we see a rate hike in 2015."
Residential financing rates aren't expected to move much higher. Bankrate, an online source for financial information, noted that despite any moves made by the Fed, rates are likely to stay right around where they are now - near historic lows - due to the strength of the economy overall.