Despite still hovering near record lows, the average U.S. mortgage interest rate increased for the second straight week and to a four-month high for the week ending October 20, 2016, according to Freddie Mac's weekly Primary Mortgage Market Survey.
The 15-year, fixed-rate mortgage averaged 2.79 percent, with an average 0.5 point, an increase of 0.3 percent from the previous week, but lower than the 2.98 percent average during the same week in 2015.
"The 30-year fixed-rate mortgage moved a solid 5 basis points to 3.52 percent while the 10-year Treasury yield remained relatively flat," Sean Becketti, chief economist at Freddie Mac, said. "This is the first week in over 4 months that rates have risen above 3.50 percent. This month, mortgage rates seem to be catching up to Treasury yields and returning to pre-Brexit levels."
What do mortgage professionals think about interest rates in 2017? It depends on who you ask, but a lot of people in the industry seem to think that average interest rates will increase about a half percent over the next six to 12 months.