Thirty-year fixed, 15-year fixed and5/1 ARM rates are all higher Thursday, according to a NerdWalletsurvey of mortgage rates published by national lendersthis morning.
The U.S. Federal Reserve boosted short-term interest rates by onequarter of a percentage point (0.25) Wednesday, and, on average, lenders priced in well more than half of that hike into 30-year and 15-year fixed mortgage rates overnight.
Thursday, Dec. 15
Following the Fed rate hike, stocks fell, the bond market sold off and the experts weighed in.
“[The] Fed announcement is going to have the greatest impact on first-time homebuyers as they consider their monthly payment budgets,” Jonathan Smoke, Realtor.com chief economist, said in a statement. “Rates will likely stay the same until about March, so buyers considering a purchase in 2017 may want to consider getting into the market now.”
Smoke said with the Fed indicating it will raise rates at least three times next year, “mortgage rates will likely move proportionately in anticipation of those increases, as clear data emerges about stronger economic growth and inflation.”
Meanwhile, Doug Duncan, chief economist for Fannie Mae, said the Fed’s action is based on the possible shifts in government policy related to the incoming Trump administration.
“Much of the upbeat financial data, including the jumps in interest rates, the dollar and equity prices, are largely due to the anticipation of stronger economic growth from suggested fiscal stimulus and deregulation from the new administration and Congress,” Duncan said in a statement. However, he added that the priorities of the president and the willingness of Congress to comply are always hard to predict.
“The Fed will likely be in wait-and-see mode given this substantial policy uncertainty, and we view this prudency a virtue,” Duncan added.
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 offeredby a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providingthe most accurate view of the costsa borrower might pay.
The article Mortgage Rates Today, Thursday, Dec. 15: Surging Following Fed Hike originally appeared on NerdWallet.