MCLEAN, Va. (12/11/15)--With next week’s Federal Open Market Committee (FOMC) meeting on the horizon, mortgage rates climbed higher for the week ending Dec. 10, according to Freddie Mac’s Primary Mortgage Market Survey.
The 30-year fixed-rate mortgage rate averaged 3.95% for the week, a 0.6% increase from last week when it averaged 3.93%. Last year at this time the rate sat at 3.93%.
“The economy added 211,000 new jobs in November, exceeding analysts’ expectations, and the prior two months were revised higher as well,” said Sean Becketti, Freddie Mac chief economist. “This momentum is likely to cement a decision by the Fed to begin raising interest rates this month.”
Becketti added that following the unemployment report’s release, Treasuries rose 7 basis points, propelling the 30-year mortgage rate to climb to 3.95%.
The 15-year fixed-rate mortgage rate, meanwhile, averaged 3.19% for the week that ended Dec. 10, climbing 0.5% from the prior week. At this time last year the rate averaged 3.2%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) rate increased 0.5% during the week to 3.03%, while the one-year Treasury-indexed ARM rose 0.2% to 2.64%.
Both rates have climbed higher than their levels last year at this time. The FOMC’s final meeting of the year will take place Dec. 15-16.