Uncertainty Over the Election Moves Rates Up

Average fixed-rate mortgages edged higher this week, but forecasters are unsure if the rising rates may be a temporary blip or a more lasting one.

"This week's survey reflects pre-election market conditions,” says Sean Becketti, Freddie Mac’s chief economist. “As a result, the 30-year mortgage rate increased to 3.57 percent, only 3 basis points higher than last week's level. On Wednesday, the 10-year Treasury yield closed above 2 percent, about 25 basis points higher than its pre-election value and its highest yield since January. At this point, it is too soon to tell whether Treasuries will hold this new level or if the mortgage rate will increase as much over the coming week."

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 10:

• 30-year fixed-rate mortgages: averaged 3.57 percent, with an average 0.5 point, rising from last week’s 3.54 percent average. A year ago, 30-year rates averaged 3.98 percent.
• 15-year fixed-rate mortgages: averaged 2.88 percent, with an average 0.5 point, rising from last week’s 2.84 percent average. A year ago, 15-year rates averaged 3.20 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.88 percent, with an average 0.4 point, increasing from a 2.87 percent average the prior week. Last year at this time, 5-year ARMs averaged 3.03 percent.

Source: Freddie Mac