The Markets. Rates on home loans were slightly higher again in the past week going into the Fed’s rate decision. Freddie Mac announced that for the week ending December 17, 30-year fixed rates rose to 3.97% from 3.95% the week before. The average for 15-year loans increased slightly to 3.22%. Adjustables were mixed, with the average for one-year adjustables increasing to 2.67% and five-year adjustables remaining at 3.03%. A year ago, 30-year fixed rates were at 3.80%, a bit lower than today’s levels. Attributed to Sean Becketti, chief economist, Freddie Mac –“As was almost-universally expected, the Federal Open Market Committee (FOMC) of the Federal Reserve elected this week to raise short-term interest rates for the first time since 2006. We take the Fed at its word that monetary tightening in 2016 will be gradual, and we expect only a modest increase in longer-term rates. Rates on home loans will tick higher but remain at historically low levels in 2016. Home sales will remain strong, but refinance activity should cool somewhat.” Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.
Current Indices For Adjustable Rate Mortgages
Updated December 18, 2015
Updated December 18, 2015
Daily Value | Monthly Value | |
Dec 17 | November | |
6-month Treasury Security | 0.48% | 0.33% |
1-year Treasury Security | 0.69% | 0.48% |
3-year Treasury Security | 1.33% | 1.20% |
5-year Treasury Security | 1.73% | 1.67% |
10-year Treasury Security | 2.24% | 2.26% |
12-month LIBOR | 0.868% (Nov) | |
12-month MTA | 0.285% (Nov) | |
11th District Cost of Funds | 0.649% (Oct) | |
Prime Rate | 3.50% (Dec) |