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Mortgage Rates Inch Lower

November 30, 2017

The 30-year fixed mortgage rate fell two basis points to 3.9 percent in this week’s survey, but we closed our survey prior to a surge in long-term interest rates following an upward revision to third quarter U.S. Real GDP growth and comments by Federal Reserve Chair Yellen touting a broad-based economic expansion.

The market implied probability of a Fed rate hike in December neared 100 percent, helping to drive short term interest rates higher. The 5/1 Hybrid ARM, which is more sensitive to short-term rates than the 30-year fixed mortgage, increased 10 basis points to 3.32 percent in this week’s survey. The spread between the 30-year fixed mortgage and 5/1 Hybrid ARM is just 58 basis points this week, the lowest spread since November of 2012.

Primary Mortgage Market Survey®

U.S. weekly averages as of 11/30/2017
30-Yr FRM
3.9%
0.02 1-Wk
0.18 1-Yr
0.5 Fees/Points
15-Yr FRM
3.3%
0.02 1-Wk
0.04 1-Yr
0.5 Fees/Points
5/1-Yr ARM
3.32%
0.10 1-Wk
0.17 1-Yr
0.3 Fees/Points
Zoom
11/30/2016 - 11/30/2017
30Y FRM15Y FRM5/1 ARMDec '16Jan '17Feb '17Mar '17Apr '17May '17Jun '17Jul '17Aug '17Sep '17Oct '17Nov '1719801990200020103.00%3.25%3.50%3.75%4.00%4.25%4.50%

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.


Opinions, estimates, forecasts and other views contained in this document are those of Freddie Mac's Economic & Housing Research group, do not necessarily represent the views of Freddie Mac or its management, should not be construed as indicating Freddie Mac's business prospects or expected results, and are subject to change without notice. Although the Economic & Housing Research group attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. The information is therefore provided on an “as is” basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution. Alteration of this document is strictly prohibited. ©2017 by Freddie Mac.