MCLEAN, Va. (11/13/15)--Lenders appear to be gearing up for a rate hike by the Federal Open Market Committee (FOMC), as average mortgage rates climbed for the second straight week this week.
The 30-year fixed-rate mortgage rate rose to 3.98% from 3.87% for the week ending Nov. 12, almost reaching the level it stood at last year at this time of 4.01%.
The 15-year fixed-rate mortgage rate also increased, rising to 3.2% for the week from an average of 3.09%. This matches the level of the 15-year rate of a year ago.
“A surprisingly strong October jobs report showed 271,000 jobs added and wage growth of 0.4% from last month, exceeding many experts’ expectations,” said Sean Becketti, Freddie Mac chief economist. “The positive employment reports pushed Treasury yields to about 2.3% as investors responded by placing a higher likelihood on a December rate hike.
“There is only one more employment report before the December FOMC meeting, which will have major implications on whether we see a rate hike in 2015.”
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) rate jumped to 3.03% from 2.96% during the week, higher than last year’s rate of 3.02%.
And the one-year Treasury-indexed ARM increased to 2.65% from 2.62%, well ahead of last year’s rate of 2.43%.