Interest rates on mortgages mostly nudged higher this week, as the effects of the Federal Reserves initial increase of the federal funds rate seem to be fairly low-key.
Rates have virtually stayed where they were before the rate hike, says Bryan Sullivan, executive vice president and chief financial officer at loanDepot in Foothill Ranch, California.
I think part of it is driven by everybody anticipating December being the month when the (federal funds rate) was going to increase from its (near) 0 level, he says.
Brett Sinnott, vice president of capital markets at CMG Financial in San Ramon, California, agrees: Everybody did a really good job of building that into their models.
The Fed is expected to raise the federal funds rate by 25 basis points once every quarter throughout 2016, Sinnott adds.
A look at this weeks rates
- The benchmark 30-year fixed-rate mortgage rose to 4.12% from 4.09%, according to Bankrates Dec. 22 survey of large lenders. A year ago, the rate was 3.96%. Four weeks ago it was 4.07%. The mortgages in this weeks survey had an average total of 0.22 discount and origination points. Over the past 52 weeks, the 30-year fixed has averaged 3.99%. This weeks rate is 0.13 percentage points higher than the 52-week average.
- The benchmark 15-year fixed-rate mortgage fell to 3.33% from 3.34%.
- The benchmark 30-year fixed-rate jumbo mortgage stayed at 4.03%.
- The benchmark 5/1 adjustable-rate mortgage rose to 3.44% from 3.42%.