Average U.S. mortgage interest rates increased for the seventh consecutive week, according to Freddie Mac's Primary Mortgage Market Survey.
"As was almost universally expected, the FOMC closed the year with its one and only rate hike of 2016," Sean Becketti, chief economist for Freddie Mac, said. "The consensus of the committee points to more rate hikes in 2017; however, the experience of this year combined with the policy uncertainty that accompanies a new administration suggests a wait-and-see outlook.
"This week's mortgage rate survey was completed prior to the FOMC announcement. The MBA's Applications Survey posted drops in both refinance and purchase applications, registering the impact of recent mortgage rate increases. If rates continue their upward trend, expect mortgage activity to be significantly subdued in 2017."
The 15-year, fixed rate mortgage loan averaged 3.37 percent with an average 0.5 point, an increase from 3.36 percent the previous week. The 15-year note averaged 3.22 percent the same week last year.
The five-year, adjustable rate mortgage (ARM) increased 2 basis points from last week to 3.19 percent with an average 0.4 point. A year ago the 5-year ARM averaged 3.03 percent.