After weeks of continued decline, mortgage interest rates climbed, following the two-day Fed meeting. The 30-year FRM rate rose by 2 basis points for the week.
According to Freddie Mac’s weekly rate forecast via the Primary Mortgage Market Survey(PMMS) for the week ending June 15, 2017:
- The 30-year fixed rate mortgage rate finished at 3.91 percent, slightly up from the 3.89 percent a week prior. At the same time a year ago, the FRM rate recorded 3.54 percent.
- Meanwhile, 15-year FRM rate concluded with an average of 3.18 percent, also slightly up from the previous week’s 3.16 percent. The average rate was at 2.81 percent at this time last year.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage rate also increased from 3.11 percent last week to 3.15 percent this week. During the same time back in 2016, the average was at 2.74 percent.
The rise could be telltale of the future of mortgage rates although that remains subject to very volatile yet impactful pressures in the market. If you are looking to buy and were not able to lock in last week, now could be the best time to secure your rate before the slight increases metamorphose into full-blown strides forward.
The Primary Mortgage Market Survey® was established in April 1971 as the foremost source of mortgage trends in the regional and national level. Its data is utilized by both the public and the mortgage industry at large to gauge market conditions and evaluate mortgage loan options.
The survey results are gathered based on lenders’ most popular mortgage products – inclusive of 30 and 15-year FRMs as well as adjustable-rate mortgages. The first-lien prime conventional conforming home purchase mortgages (with an LTV of 80 percent) are considered primary basis for the survey. Meanwhile, the U.S. Treasury yields are used to index ARMs. Lenders are asked to provide the a) initial coupon rate and points, as well as b) ARM margins for this purpose.