Mortgage Rates Surge Higher, Expect Even Higher Rates in 2017

Mortgage rates and bond yields have surged higher over the past three months. The increase in rates and yields accelerated since Donald Trump won the Presidential Election. The month before the election, average 30 year conforming mortgage rates were at 3.54 percent. 30 year mortgage rates today are above 4.00 percent, averaging 4.18 percent.

During the same time, 10 year U.S. Treasury yields rose from around 1.60 percent to today's yield of 2.60 percent, a 100 basis point increase. We expect even higher rates and yields in 2017 because the Federal Open Market Committee is expected to increase rates.

The FOMC anticipates increasing the fed funds rate by 0.75 percent in 2017 and may possibly increase the rate more if needed. This will put upward pressure on Treasury yields, which in turn will put upward pressure on mortgage rates. 10 year Treasury yields could hit 3.50 percent and average 30 year mortgage rates might hit 5.00 percent by the end of 2017.

15 year mortgage rates are also moved sharply higher over the past three months. In late September of this year, average 15 year mortgage rates were around 2.75 percent. 15 year mortgage rates today are much higher, averaging 3.33 percent, an increase of 58 basis points. 15 year mortgage rates will likely hit 4.00 percent by the end of 2017.

On a percentage basis, the current increase for both 30 year rates and 15 year rates are even higher. Average 30 year mortgage rates increased by 18 percent and average 15 year mortgage rates increased by 21 percent in 3 months. You can see an archive of average mortgage rates for 2016 at Freddie Mac Mortgage Rate Archive.

Unfortunately, for homeowners financing their purchase, higher mortgage rates are here and will continue to move higher. If you're a potential homebuyer, now is time to lock in a mortgage rate before rates increase. The higher the mortgage rates, the higher your monthly mortgage payment will be and the less home you can afford.

The rates mentioned above are average rates but you can still find lenders quoting mortgage rates below the average. If you're comparing mortgage rates, you can see a list of lenders listed in your state by searching our rate lists at Mortgage Rates.



Loan Type
Purchase    Refinance
Location
State/City    Zip Code
Loan Amt Points FICO % Down
  
$
in 06101, All points, 740    Sort by:
Lender
APR
Rate
Cost & Fees
Notes
 
PERIOD_FIXED_30YEARS Mortgage Loan from AmeriSave Mortgage Corporation
AmeriSave Mortgage Corporation
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111333.gif
300000
Purchase
3.138%
3.125%
USD
AmeriSave Mortgage Corporation Logo
NMLS # 1168
State Lic # 11309
10/23/2020
at 0.000 pts
30 day lock rate
Est payment: $1,286
Fees in APR: $500
Direct Lender. Billions Funded.
 
PERIOD_FIXED_30YEARS Mortgage Loan from AmeriSave Mortgage Corporation
AmeriSave Mortgage Corporation
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111333.gif
300000
Purchase
2.646%
2.500%
USD
AmeriSave Mortgage Corporation Logo
NMLS # 1168
State Lic # 11309
10/23/2020
at 1.750 pts
30 day lock rate
Est payment: $1,186
Fees in APR: $5,795
Direct Lender. Billions Funded.
 
PERIOD_FIXED_30YEARS Mortgage Loan from AmeriSave Mortgage Corporation
AmeriSave Mortgage Corporation
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111333.gif
300000
Purchase
2.934%
2.875%
USD
AmeriSave Mortgage Corporation Logo
NMLS # 1168
State Lic # 11309
10/23/2020
at 0.625 pts
30 day lock rate
Est payment: $1,245
Fees in APR: $2,297
Direct Lender. Billions Funded.
 
PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
3.693%
3.500%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
10/23/2020
at 2.000 pts
45 day lock rate
Est payment: $1,348
Fees in APR: $7,250
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from Rocket Mortgage
Rocket Mortgage
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111574.gif
300000
Purchase
3.739%
3.625%
USD
Rocket Mortgage Logo
NMLS # 3030
10/23/2020
at 1.000 pts
45 day lock rate
Est payment: $1,369
Fees in APR: $4,250
From the lender: We can close your loan in less than a month!
 
PERIOD_FIXED_30YEARS Mortgage Loan from Rocket Mortgage
Rocket Mortgage
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111574.gif
300000
Purchase
3.314%
3.125%
USD
Rocket Mortgage Logo
NMLS # 3030
10/23/2020
at 2.000 pts
45 day lock rate
Est payment: $1,286
Fees in APR: $7,250
From the lender: We can close your loan in less than a month!
 
Data provided by Brown Bag Marketing, Inc. Payments do not include amounts for taxes and insurance premiums. Click here for more information on rates and product details.



Author: Brian McKay
December 19th, 2016