Economic Report: Mortgage rates surge to 10-week high but a dovish Fed may quash that move

Rates for home loans jumped in the latest week following a smaller rise in U.S. Treasury yields, mortgage provider Freddie Mac said Thursday, yet they remain pinned below the closely watched 4% threshold.

The 30-year fixed-rate mortgage averaged 3.91% in the Oct. 12 week, while the 15-year fixed-rate mortgage averaged 3.21%. Both products rose six basis points during the week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.16%, versus 3.18% during the prior week.

Mortgage rates fell below the key 4% line in early July and have remained there even as the current week’s move marked the fifth-straight week of increases or flat readings. Most housing experts expected mortgage rates to move above post-crisis lows during 2017, but so far the benchmark 30-year fixed has averaged just 4.01% this year.

Also read: The ‘pressure cooker’ housing market keeps defying forecasts

Unsettled geopolitics are keeping demand for safe assets like government paper high, which pushes yields down. The 10-year Treasury TMUBMUSD10Y, -0.45%  , which mortgage rates track, may resume its slide in the coming week in the wake of a more dovish tone from the Federal Reserve than investors had anticipated.

Related: December rate hike might not be automatic, minutes of last month’s meeting show

Filed in: Top News Tags: 

You might like:

Tesla’s Semi to have a Founders Series version for $200,000 Tesla’s Semi to have a Founders Series version for $200,000
Here’s a timely reminder on Black Friday of America’s escalating credit-card debt Here’s a timely reminder on Black Friday of America’s escalating credit-card debt
Futures Movers: U.S. oil prices climb as traders focus on disruptions, OPEC meeting Futures Movers: U.S. oil prices climb as traders focus on disruptions, OPEC meeting
NewsWatch: The ‘Vanguard effect’ means your investments could soon cost nothing NewsWatch: The ‘Vanguard effect’ means your investments could soon cost nothing
Currencies: Dollar heads for third weekly loss, as euro gains more ground Currencies: Dollar heads for third weekly loss, as euro gains more ground
Bond Report: Treasury yields slightly higher after solid data affirms eurozone recovery Bond Report: Treasury yields slightly higher after solid data affirms eurozone recovery
Market Snapshot: U.S. stocks set to climb, with retailers in focus for Black Friday Market Snapshot: U.S. stocks set to climb, with retailers in focus for Black Friday
: As Black Friday sales kick off, social media swamps retailers with complaints : As Black Friday sales kick off, social media swamps retailers with complaints

Leave a Reply

Submit Comment
© 7263 Stock Investors News. All rights reserved. XHTML / CSS Valid.