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Mortgage Interest Rates Continue to Climb

Written by Rich Rosa | Dec 2, 2016 2:31:23 PM

Average U.S. mortgage loan interest rates rose for the fifth straight week, Freddie Mac reported December 1, 2016. 

The 30-year, fixed rate mortgage averaged 4.08 percent with an average 0.5 point for the week ending December 1, 2016, an increase from 4.03 percent the previous week, according to the weekly Primary Mortgage Market Survey. The 30-year loan averaged 3.93 percent during the same week last year. 

"The 10-year Treasury yield remained flat despite an upward revision to third quarter GDP," Freddie Mac chief economist Sean Becketti said. "The 30-year mortgage rate rose 5 basis points to 4.08 percent, rising a total of 51 basis points in three short weeks. With mortgage rates at the highest we've seen this year, borrowers are now backpedaling on [refinancing] opportunities. The latest weekly applications survey results from the Mortgage Bankers Association show refinance activity down 16 percent week over week."

The 15-year, fixed rate mortgage loan increased even more than the 30-year note. The 15-year loan averaged 3.34 percent with an average 0.5 point compared to 3.25 percent the previous week. During the same week last year the 15-year note averaged 3.16 percent. 

The five-year adjustable-rate mortgage averaged 3.15 percent with an average 0.4 point compared to 3.12 percent last week and 2.99 percent last year.