Mortgage rates fall after month-long rise

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Real Estate

The average 30-year-fixed rate mortgage declined one basis point from the week prior to 3.55% during the week ending Jan. 27, according to the latest Freddie Mac PMMS Mortgage Survey.

A year ago, the 30-year fixed-rate mortgage averaged 2.77%. Most economists believe rates will continue to climb in the weeks and months ahead.

“Following a month-long rise, mortgage rates effectively stayed flat this week,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “We do expect rates to continue to increase but at a more gradual pace.”

The rise in mortgage rates moved in concert with the 10-year Treasury yield, which reached 1.85% yesterday, compared to 1.83% on the previous Wednesday.

The expectation of higher mortgage rates is based on the fact that the Federal Reserve will raise interest rates. On Wednesday, the central bank said it will happen “soon,” though an exact timetable has not yet been disclosed.

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