Mortgage Rates Turn Sharply Higher This Week
Mortgage rates moved considerably higher this week, after hovering just above record lows the past couple of weeks. Average 30 year conforming mortgage rates increased 12 basis points this week from 3.36 percent to 3.48 percent. Despite the recent increase, 30 year rates are only 17 basis points higher than the record low set in the 4th quarter of 2012.
The future trend for mortgage rates will be higher in the coming months and years. The first catalyst for higher rates will be the Federal Open Market Committee's December meeting. The FOMC is predicted to increase the fed funds in December and the increase is widely expected to be 25 basis points.
The fed funds rate increase will likely only have a slight impact on mortgage rates. Any increases in mortgage rates will happen before the meeting because markets will drive 10 year rates higher in anticipation of a rate increase. Regardless, the future trend for higher mortgage rates will start in December.
Fixed mortgage rates and long term bond yields trend higher together because most lenders set fixed mortgage rates based on long term U.S. Treasury yields.
Current Mortgage Rates
To see a list of today's mortgage rates search our rate lists at MortgageRates.RatesORama.com.
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RatesORama.com Average Mortgage Rates