Freddie Mac reported this week that the national average for the 30-year fixed rate mortgage hit 4.16 percent, increasing for the seventh consecutive week.
That’s 62 basis points higher than 3.54 percent, which is where the 30-year rate stood on Nov. 3, five days before the presidential election which saw Donald Trump become president-elect.
This week, Federal Reserve policymakers made good on their projected quarter-point hike in the federal funds rate, the Central Bank’s second such move since the financial crisis of 2008.
“The consensus of the (Fed’s policy-making) committee points to more rate hikes in 2017,” said Sean Becketti, chief economist, Freddie Mac. “However, the experience of this year combined with the policy uncertainty that accompanies a new Administration suggests a wait-and-see outlook.”
For now, though, consumers looking to purchase a home or refinance an existing property may have to rethink their strategy.
At the current 30-year fixed average rate, you’ll pay $486.69 per month in principal and interest for every $100,000 you borrow. That’s an increase of $35.41 (for each $100,000 borrowed) over what you would have paid when the interest rate stood at 3.54 percent before the election.
The latest survey of mortgage applications by the Mortgage Bankers Associated posted another 4 percent decline in both refinance and purchase applications, the result of the recent mortgage rate increases.
“If rates continue their upward trend, expect mortgage activity to be significantly subdued in 2017,” said Becketti.
Here is the rundown of average mortgage rates for the week from Freddie Mac:
30-year fixed-rate mortgage (FRM) averaged 4.16 percent, with an average 0.5 point for the week ending December 15, 2016, up from last week when it averaged 4.13 percent. A year ago at this time, the 30-year FRM averaged 3.97 percent.
15-year FRM this week averaged 3.37 percent with an average 0.5 point, up from last week when it averaged 3.36 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 3.19 percent this week with an average 0.4 point, up from last week when it averaged 3.17 percent. A year ago, the 5-year ARM averaged 3.03 percent.