Mortgage rates in U.S. jump to nearly 3-year highStaff Writer | March 10, 2017
Mortgage rates increased for a second week in a row, with the benchmark 30-year fixed mortgage rate rising to the highest level since April 2014 at 4.38 percent.
Houses Weekly national survey
The larger jumbo 30-year fixed increased to 4.35 percent and the average 15-year fixed mortgage rate climbed to 3.57 percent.
Adjustable mortgage rates also moved up, with the 5-year ARM stepping up to 3.57 percent and the 7-year ARM to 3.77 percent.
Mortgage rates posted further increases after a speech by Federal Reserve Chair Janet Yellen all-but-telegraphed the expectation of an interest rate hike on March 15.
The Federal Open Market Committee meets March 14-15 and is now widely expected to raise interest rates another quarter percentage point. Just three weeks ago, there were scant odds of a March rate hike, but it has become a near lock in recent weeks.
This also increases the prospect that the Fed will raise interest rates more than twice this year. Bond yields and mortgage rates had to recalibrate to reflect these now higher odds.
Mortgage rates are closely related to yields on long-term government bonds.
At the current average 30-year fixed mortgage rate of 4.38 percent, the monthly payment for a $200,000 loan is $999.16. ■