The Mortgage Market Melt-Up In Rates?

By | January 21, 2018

As the data below shows, courtesy of the Freddie Mac Primary Mortgage Market Survey, the average 30-year fixed rate mortgage rate no longer has a 3-handle and instead is now 4!

The good news is that the 4.04% number is below the 4.30% level in the survey back in March 2017, but not by much.

This news is consistent with the fact that the 10-year treasury is trading at levels not seen for quite some time as the economy seems to be picking-up steam, inflation indicators may be poised for a move higher and the labor markets are tightening.

historical 10-year treasury yield chart

Source: MarketWatch

According to the Fed’s mandate of full employment and inflation staying within a prescribed band, this may be indicating that as expected by the forecasters around Wall Street that there likely will be several 2018 hikes in the fed funds rate.

Freddie Mac Primary Mortgage Market Survey

If the forecasts for movement by the Fed are correct, what impact will rising mortgage rates have on the real estate market? Keep your eye on the data!

1-year average mortgage rates

Source: Freddie Mac

mortgage rates historical chart

Source: Freddie Mac

Questions about this subject or anything to do with the title insurance industry in New York State, please contact Hallmark Abstract Service at info@hallmarkabstractllc.com or (646) 741-6101.

Related Articles
Are 10-year Treasury Yields A Shot Across The Bow Of The Real Estate Market?

Flattening Treasury Yield Curve And Recession: This Time Is Different?

Tax Reform And It’s Impact On New York, New Jersey And Connecticut Real Estate!

One thought on “The Mortgage Market Melt-Up In Rates?

  1. Pingback: Yikes: 10-Year Treasury Tops 2.70% | Hallmark Abstract LLC

Leave a Reply

Your email address will not be published. Required fields are marked *