Friday Rate Update

Mortgage Rates in the U.S. Rise While Investors Wait for the Fed

Freddie Mac reported on May 26 that mortgage rates rose from their lowest levels since 2013 as investors speculated about the timing of the Federal Reserve's next interest rate hike. The average 30-year fixed-rate mortgage rose to 3.64 percent from 3.58 percent the previous week, and the average 15-year fixed-rate mortgage climbed to 2.89 percent from 2.81 percent. Mortgage rates edged up in response to an increase in Treasury yields following the release of minutes from the Federal Open Market Committee's April 27 meeting. According to data compiled by Bloomberg on federal funds futures, there is a 32 percent chance the Fed will increase rates at its June meeting, up from only 4 percent two weeks ago.

From "Mortgage Rates in the U.S. Rise While Investors Wait for the Fed"
Bloomberg (05/26/16) Maurus, Christine