Joseph Aucoin posted on November 06, 2014 15:28
Fixed mortgage rates across the United States have risen slightly for a second consecutive week to land above 4%.
The average rate on a 30-year fixed mortgage inched up to 4.02% from 3.98% last week, according to the latest survey from mortgage buyer Freddie Mac. At this time last year the average was 4.16%.
“Mortgage rates continued to rise this week with the 30-year fixed-rate mortgage eclipsing the 4% mark,” Frank Nothaft, vice president and chief economist at Freddie Mac, said in a statement. “The rate increases coincide with real GDP beating consensus expectations of 3.0% growth by growing at an annualized rate of 3.5% in the third quarter. The ISM Manufacturing Index also beat expectations registering 59 in October, up from September’s reading of 56.6.”
The average rate on a 15-year fixed mortgage also registered a slight uptick, to 2.97% from 2.94% last week. A year ago, it averaged 2.96%, according to Freddie Mac.
Averages for the two most popular hybrid adjustable-rate mortgages (ARMs) also rose from last week. Previously at 2.94%, the five-year ARM increased to 2.97%. The one-year ARM also trended upward, from 2.43% a week ago to 2.45% this week.
Analysts predict we’ll see more of the same over the next week. In the latest Mortgage Rate Trend Index by Bankrate.com, 81% of the panelists polled think rates will remain relatively unchanged. Another 19% say rates will increase, while none of the panelists expected mortgage rates to decline over the next week.
“Mortgage rates seem to have settled at a plateau,” said Holden Lewis, assistant managing editor at Bankrate.com. “Over the longer run, they’re going to rise. Although I doubt they’ll go up much this week, it’s still wise to lock a rate when you’re comfortable with it. Unexpected good news could send it upward. The October employment report comes out Friday morning, and that could deliver some of that unexpected good news.”