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3.98: Rates Continue To Head Towards 4 Percent

by Tianna Mañón

3.98: Rates Continue To Head Towards 4 Percent: Figure 1

Is the three month run of sub-4 percent interest rates coming to an end?

Freddie Mac reported Thursday morning that a 30-year fixed-rate mortgage averaged 3.98 percent with an average 0.6 point. That is an increase of 12 basis points from last week, and now rates sit just below 4 percent.

According to Sean Becketti, chief economist with Freddie Mac, the monthly jobs report contributed heavily to the increase.

“A surprisingly strong October jobs report showed 271,000 jobs added and wage growth of 0.4 percent from last month, exceeding many experts’ expectations. The positive employment reports pushed Treasury yields to about 2.3 percent as investors responded by placing a higher likelihood on a December rate hike. Mortgage rates followed with the 30-year jumping 11 basis points to 3.98 percent, the highest since July. There is only one more employment report before the December FOMC meeting, which will have major implications on whether we see a rate hike in 2015.”

3.98: Rates Continue To Head Towards 4 Percent: Figure 2

The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.

See other articles related to: mortgage rates, freddie mac

This article originally published at http://dc.urbanturf.com/articles/blog/3.98_rates_continue_to_head_towards_4_percent/10578

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