The average 30-year fixed rate mortgage (FRM) rate jumped up to 3.80% during the week ending May 27, 2016. The 15-year FRM rate also increased to 2.93%.
FRM rates have remained relatively low during the recovery from the Great Recession due to near-zero short-term borrowing rates set by the Federal Reserve (the Fed). The Fed raised the short-term rate by 0.25% on December 17, 2015 following seven years at essentially zero.
However, FRM rates will not see the ripple effects of the rate hike until late 2016 at the earliest, but likely in 2017 as the bond market weakens in price. . . . Read the rest Here.