By Neal J. Leitereg Published on November 7, 2013 to Realtor.com
Fixed-rate mortgages rose slightly this week, with further increases predicted in the short-term. The uptick followed a two-week downturn in which key rates hit their lowest levels since June.
Mortgage buyer Freddie Mac’s latest survey showed that the average rate on a 30-year mortgage increased 0.06 percentage point week-over-week. The 30-year average is now trending at 4.16 percent after previously dropping to 4.1 percent, which was the lowest level in four months. A year ago, the average rate on a 30-year fixed mortgage was 3.4 percent.
The average rate on a 15-year fixed loan rose to 3.27 percent, an increase of 0.07 percentage point week-over-week and 0.58 percentage point year-over-year. The 15-year average has not trended below the 3 percent threshold since May of this year.
Fixed mortgage rates are predicted to rise significantly come January, when the federal government is expected to curb its bond buy-back program. Some predict the 30-year fixed-rate average will rise to as much as 4.6 percent in Q1 of 2014 and hit the 5 percent threshold by Q3.
Loans previously dipped in October following the conclusion of the federal government shutdown. Beginning in May, averages on fixed-rate mortgage loans had climbed more than a percentage point; however, a week ago both the 30-year and 15-year fixed-rate loans hit their lowest levels since June 20.
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