Courtesy of Jeffrey Lee Nelson
Finance of American Mortgage
three more increases in 2017, up from the two seen in September.
Still, Fed Chair Janet Yellen sought to downplay the significance
of that shift in a press release after the decision (Bloomberg).
The mortgage bonds have lost over 6 points in value, as is
reflected in the higher rates that we have seen since the
election. Assuming that our President-Elect is successful in
managing a recovery of the economy, the outlook for continued
rate increases is highly likely.
Note that we have up to 270 day locks (depending on product) to
hedge against future rate increases (restrictions apply of
course!)- Jeff
MCLEAN, VA--(Marketwired - Dec 15, 2016) - Freddie Mac (OTCQB:
FMCC) today released the results of its Primary Mortgage Market
Survey® (PMMS®), showing average fixed mortgage rates moving
higher for the seventh consecutive week.
30-year fixed-rate mortgage (FRM) averaged 4.16 percent with an
average 0.5 point for the week ending December 15, 2016, up from
last week when it averaged 4.13 percent. A year ago at this time,
the 30-year FRM averaged 3.97 percent.
Borrowers may still pay closing costs which are not included in
the survey.
Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.
"As was almost-universally expected, the FOMC closed the year
with its one-and-only rate hike of 2016. The consensus of the
committee points to more rate hikes in 2017. However, the
experience of this year combined with the policy uncertainty that
accompanies a new Administration suggests a wait-and-see outlook.
"This week's mortgage rate survey was completed prior to the FOMC
announcement. The 30-year mortgage rate rose 3 basis points on
the week to 4.16 percent. The MBA's Applications Survey posted
drops in both refinance and purchase applications, registering
the impact of recent mortgage rate increases. If rates continue
their upward trend, expect mortgage activity to be significantly
subdued in 2017."