Mortgage rates up slightly ahead of Fed taper announcement

by Ryan Smith19 Dec 2013
Fixed mortgage rates rose slightly this week leading up to the Federal Reserve’s decision to wind back its bond-buying program, according to data released Thursday by Freddie Mac.

“Mortgage rates rose slightly leading up to the Federal Reserve's policy announcement. The statement indicated that the central bank would begin to trim its bond buying program,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “The Fed noted that the economy expanded at a modest pace, but the unemployment rate remains elevated. In addition, housing starts in November rose to a seasonally adjusted annual rate of 1,091,000, the highest rate since February 2008. Permits were at a seasonally adjusted annual rate of 1,007,000 in November, 7.9 percent higher than in November 2012.”

Average rates for the 30-year fixed-rate mortgage were 4.47% this week, according to Freddie. That’s up from last week’s 4.42%. last year at this time, the 30-year FRM averaged 3.37%.

The 15-year FRM rose from 3.43% to 3.51% this week. A year ago, the 15-year FRM averaged 2.65%.

Adjustable-rate mortgages also rose this week. The 5-year Treasury-indexed ARM rose to 2.96% from last week’s 2.94%. The 1-year Treasury-indexed ARM rose to 2.57% from last week’s 2.51%.



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