With 2017 upon us, mortgage rates reversed their downward trend by rising slightly. Thirty-year fixed and 5/1 ARMs were both up, while 15-year fixed loans remained unchanged Tuesday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.
The housing market saw a year of strong home price growth, and that’s setting the stage for even more increases in the year ahead.
National home prices increased 7.1% year-over-year in November 2016, according to the latest CoreLogic Home Price Index Report. Prices also rose month-over-month, with a 1.1% climb in November 2016.
Overall, home prices have risen 44% since bottoming out in March 2011 and are expected to increase 4.7% from November 2016 to November 2017, according to the report. That could add another obstacle for homebuyers who are already facing higher mortgage rates and inventory shortages in many U.S. housing markets.
While CoreLogic reported that home prices have increased on a year-over-year basis every month since February 2012, prices are still 4.1% below the April 2006 peak. But that could change this year.
“Home prices continue to march higher, with home prices in 27 states above their pre-crisis peak levels,” Anand Nallathambi, president and CEO of CoreLogic, said in a news release. “Nationally, the CoreLogic Home Price Index remains 4% below its April 2006 peak but should surpass that peak by the end of 2017.”
Homeowners looking to lower their mortgage rate can shop for refinance lenders here.
NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.
Deborah Kearns is a staff writer at NerdWallet, a personal finance website. Email: firstname.lastname@example.org. Twitter: @debbie_kearns.
The article Mortgage Rates Today, Jan. 3: Up Slightly; Home Prices to Rise in 2017 originally appeared on NerdWallet.