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Will Mortgage Rates Increase in 2017?The general consensus is that mortgage rates will move higher in 2017 but that hasn't happened yet and the year is almost half over. When Trump surprised everyone and won the election, 10 year bond yields and mortgage rates moved higher. 10 year yields increased from roughly 1.80 percent to 2.60 percent and average 30 year mortgage rates increased from 3.40 percent to 4.00 percent. Since then, both bond yields and mortgage rates are lower and in fact, both are lower overall in 2017. This wasn't supposed to happen because the Federal Reserve is in tightening mode and has increased rates twice since December 2016. While the Federal Reserve doesn't set mortgage rates, their rate changes do affect mortgage rates and the housing market. Mortgage rates tend to move in the same direction as 10 year bond yields because the 10 year note serves as a benchmark for mortgages and many forms of credit. When the fed funds rate is increased, bond yields move higher and mortgage rates also move higher. The same process happens but in the opposite direction when the fed funds rate is lowered. The Fed is expected to increase the fed funds rate two more times in 2017 and those rate increases will put more upward pressure on bond yields and mortgage rates. Will two more rate hikes actually produce higher mortgage rates? We believe so. Don't be alarmed though -mortgage rates won't move much higher from current levels. 30 year mortgage rates today are still under 4.00 percent, averaging 3.92 percent. At the beginning of the year, 30 year mortgage rates were forecast to hit 5.00 percent by the end 2017. We think this is highly unlikely at this point. A more realistic forecast is for 30 year rates to move up to 4.50 percent by the end of the year, which is only 50 basis points higher than today's average rate.
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APR
Rate
Cost & Fees
Notes
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Santander Bank, N.A. 4.557%
4/19/2019
4.500%
at 0.000 pts
60 day lock rate Est payment: $1,520.06
Fees in APR: $2,004
Union Savings Bank 4.399%
4/12/2019
4.375%
at 0.000 pts
60 day lock rate Est payment: $1,497.86
Fees in APR: $852
TD Bank, NA 4.154%
4/16/2019
4.125%
at 0.000 pts
45 day lock rate Est payment: $1,453.95
Fees in APR: $1,043
Savings Bank of Danbury 4.397%
4/19/2019
4.375%
at 0.000 pts
60 day lock rate Est payment: $1,497.86
Fees in APR: $790
Bank of America 4.365%
4/15/2019
4.250%
at 0.903 pts
60 day lock rate Est payment: $1,475.82
Fees in APR: $1,351
Citizens Bank, NA 4.403%
4/19/2019
4.375%
at 0.000 pts
60 day lock rate Est payment: $1,497.86
Fees in APR: $998
The Washington Trust Company 4.155%
4/16/2019
4.125%
at 0.000 pts
30 day lock rate Est payment: $1,453.95
Fees in APR: $1,083
UniBank for Savings 4.536%
4/19/2019
4.500%
at 0.250 pts
60 day lock rate Est payment: $1,520.06
Fees in APR: $500
United Bank 4.276%
4/16/2019
4.250%
at 0.000 pts
30 day lock rate Est payment: $1,475.82
Fees in APR: $911
The Guilford Savings Bank 4.291%
4/19/2019
4.250%
at 0.250 pts
60 day lock rate Est payment: $1,475.82
Fees in APR: $719
LincolnWay Community Bank 4.155%
4/16/2019
4.125%
at 0.000 pts
30 day lock rate Est payment: $1,453.95
Fees in APR: $1,085
Liberty Bank 4.169%
4/19/2019
4.125%
at 0.250 pts
60 day lock rate Est payment: $1,453.95
Fees in APR: $814
First National Bank of Omaha 4.575%
4/19/2019
4.500%
at 0.625 pts
60 day lock rate Est payment: $1,520.06
Fees in APR: $752
The rates above were collected by Bankrate.com on the dates specified. Rates are subject to change without notice and may vary from branch to branch. Rate/APR and terms may vary based on the creditworthiness of the individual and the extent to which the loan differs from the one used for Bankrate.com quotes. For criteria used in surveys of rates above, click here. These quotes are from banks, thrifts, and brokers, some of whom have paid for a link to their own Web site, where you can find additional information. |
RatesORama.com Average Mortgage Rates
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