Mortgage Rates End 2016 With Their Ninth Consecutive Weekly Increase

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The main fixed-rate mortgage rates are lower on Thursday from the previous day. The average 30-year mortgage rate is down two basis points, at 4.16%, which equates to a $486.69 monthly payment per $100,000 borrowed (one basis point equals one hundredth of a percentage point). A month ago, the equivalent payment would have been lower by $10.43.

The average 15-year mortgage is one basis points lower, at 3.34%, equating to a $707.05 monthly payment per $100,000 borrowed. A month ago, the equivalent payment would have been lower by $9.71.

5/1 ARM: ADJUSTABLE-RATE MORTGAGE WITH AN INITIAL FIXED 5-YEAR INTEREST RATE. DATA SOURCE: BLOOMBERG. RATES MAY INCLUDE POINTS.

Mortgage rates end 2016 with their ninth consecutive weekly increase

Mortgage agency Freddie Mac today released the results of its weekly Primary Mortgage Market Survey for the week ending Dec. 29. Both the 30- and 15-year rates recorded their ninth consecutive weekly increase to close out the year:

The 30-year fixed-rate mortgage averaged 4.32% with an average 0.5 point for the week ending December 29 2016... A year ago at this time, the 30-year FRM averaged 4.01 percent. 

15-year FRM this week averaged 3.55 percent with an average 0.5 point... A year ago at this time, the 15-year FRM averaged 3.24 percent.

As the following graph shows, following their post-election spike, both rates are now at their highest levels since early 2014:

While some potential homebuyers may be discouraged by the recent run-up in rates, it's worth keeping rates' current levels in historical perspective: In its report, Freddie Mac points out that the annual average for the 30-year fixed-rate mortgage in 2016 was 3.65% in 2016, the lowest annual average ever recorded in their survey, which goes back to 1971.