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Last updated on February 4th, 2021 at 05:16 pm
According to a Bankrate survey released on Wednesday, mortgage rates rose this week, which is good, news for the U.S. economy, but not-so-good news for borrowers.
In Bankrate’s national survey of lenders, the average cost (including origination points and other fees) of a 30-year fixed-rate mortgage climbed to 3.12 % from last week’s 3.04%.
The 15-year fixed rose less sharply, increasing just 3 basis points from the previous week.
The 30-year fixed-rate loans in this week’s survey included an average total of 0.36 discount and origination points.
Mortgage rates have fallen steadily to support the surprisingly strong housing market. However, stocks rose amid optimism about the presidential election, a potential vaccine for the coronavirus, and an improving labor market.
Market experts expect rates to rise in the coming week. Fully 92 % expect an uptick. The 10 years Treasury Yield, a key indicator for mortgage rates, rose to its highest level in months, with 1 %.
Logan Mohtashami, a housing analyst at HousingWire says, “The vaccine and better treatments give you a pathway to get the 10-year yield above 1 % and higher in 2021 as the economy works its way back to normal.
Mortgage rates should follow, which is great for the United States of America.”
Reference Source: Bankrate
