According to Freddie Mac's latest Primary Mortgage Market Survey, the average U.S. fixed mortgage rate moved higher for the eighth consecutive week in late December 2016.
Sean Becketti, Freddie Mac's chief economist said, "A week after the only rate hike of 2016, the mortgage industry digested the Fed's decision and this week's survey reflects that response. Following Yellen's speech last Wednesday, the 10-year Treasury yield rose approximately 10 basis points. The 30-year mortgage rate rose 14 basis points to 4.30 percent, reaching highs we have not seen since April 2014."
Freddie Mac News Facts:
30-year fixed-rate mortgage (FRM) averaged 4.30 percent with an average 0.5 point for the week ending December 22, 2016, up from last week when it averaged 4.16 percent. A year ago at this time, the 30-year FRM averaged 3.96 percent.
15-year FRM this week averaged 3.52 percent with an average 0.5 point, up from last week when it averaged 3.37 percent. A year ago at this time, the 15-year FRM averaged 3.22 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.32 percent this week with an average 0.4 point, up from last week when it averaged 3.19 percent. A year ago, the 5-year ARM averaged 3.06 percent.
Excessive regulations, rising mortgage interest rates and ongoing home price appreciation pushed housing affordability in the fourth quarter of 2016 to its lowest point since the third quarter of 2008.
The delinquency rate for mortgage loans on one-to-four-unit U.S. residential properties increased to a seasonally adjusted rate of 4.80 percent of all loans outstanding at the end of the fourth quarter of 2016.
According to Freddie Mac's latest Primary Mortgage Market Survey, the average 30-year mortgage rate held steady after rising last week. The 10-year Treasury yield fell 5 basis points this week following a tepid advance estimate of fourth-quarter GDP.