Mortgage Rates Jump Sharply Higher this Week

Mortgage rates are sharply higher this week, following U.S. Treasury yields higher. Average 30 year mortgage rates increased almost 30 basis points since the election. 30 year rates are up from 3.49 percent last week before the election to 3.77 percent today.   

During the same time period, 10 year Treasury yields have risen from 1.80 percent to 2.10 percent. Why the sharp increase in mortgage rates and Treasury yields the past week? Donald Trump won the election. Trump has called for lowering taxes and investing about a trillion dollars in the nation's crumbling infrastructure.

If you lower taxes and spend more, the money has to come from somewhere. The most likely source will be issuing more public debt. If the government issues a lot more debt, the most likely scenario will be investors demanding a higher yield on their investment in U.S. Treasuries.

Loan Type

Purchase Refinance with Cash out Refinance

State

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

FICO Score

Superior (780-850) Exceptional (760-779) Excellent (740-759) Very Good (720-739) Good (700-719) Above Average (680-699) Average (660-679) Fair (640-659) Need Improvement (620-639) Poor (350-620)

Loan Amount

$

Points

Up to 0 points Up to 0.5 points Up to 1 points Up to 1.5 points Up to 2 points Up to 2.5 points Up to 3 points

LTV

%

Loan Term

 15-Year Fixed  20-Year Fixed  30-Year Fixed  5-Year ARM  7-Year ARM  10-Year ARM

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The lenders whose rates and other terms appear on this chart are ICB's advertising partners. They provide their rate information to our data partner RateUpdate.com. Unless adjusted by the consumer, advertisers are sorted by APR from lowest to highest. For any advertising partners that do not provide their rate they are listed in advertisement display units at the bottom of the chart. Advertising partners may not pay to improve the frequency priority or prominence of their display. The interest rates, annual percentage rates and other terms advertised here are estimates provided by those advertising partners based on the information you entered above and do not bind. Any lender Monthly payment amounts stated do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. Although our data partner RateUpdate.com collects the information from the financial institutions themselves, the accuracy of the data cannot be guaranteed. Rates may change without notice and can change intraday. Some of the information contained in the rate tables including but not limited to special marketing notes is provided directly by the lenders. Please verify the rates and offers before applying for a loan with the financial institution themselves. No rate is binding until locked by a lender.

Lender

APR / Rate

Fees / Points

Payment

NMLS #757416

5.528%

15-Year Fixed

5.375%

$3,988

Includes 0.997 points for $3,988

Lender Fees: $0

$3,242 /mo

Next >

NMLS #1025894

5.539%

15-Year Fixed

5.375%

$4,284

Includes 0.896 points for $3,584

Lender Fees: $700

$3,242 /mo

Next >

NMLS #1701910

5.547%

15-Year Fixed

5.375%

$4,490

Includes 0.750 points for $3,000

Lender Fees: $1,490

$3,242 /mo

Next >

NMLS #6606

5.762%

15-Year Fixed

5.625%

$3,548

Includes 0.887 points for $3,548

Lender Fees: $0

$3,295 /mo

Next >

NMLS #757416

6.551%

30-Year Fixed

6.490%

$2,524

Includes 0.631 points for $2,524

Lender Fees: $0

$2,526 /mo

Next >

NMLS #1025894

6.580%

30-Year Fixed

6.490%

$3,772

Includes 0.768 points for $3,072

Lender Fees: $700

$2,526 /mo

Next >

NMLS #401822

6.644%

30-Year Fixed

6.500%

$5,995

Includes 1.000 points for $4,000

Lender Fees: $1,995

$2,529 /mo

Next >

NMLS #1701910

6.661%

30-Year Fixed

6.625%

$1,490

Includes 0.000 points for $0

Lender Fees: $1,490

$2,562 /mo

Next >

NMLS #399799

6.708%

30-Year Fixed

6.625%

$3,608

Includes 0.570 points for $2,280

Lender Fees: $1,328

$2,562 /mo

Next >

NMLS #6606

6.719%

30-Year Fixed

6.625%

$3,892

Includes 0.973 points for $3,892

Lender Fees: $0

$2,562 /mo

Next >

NMLS #401822

7.577%

15-Year Fixed

7.375%

$4,995

Includes 0.750 points for $3,000

Lender Fees: $1,995

$3,680 /mo

Next >

Rate data provided by RateUpdate.com. Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes and insurance premiums. Actual payments will be greater with taxes and insurance included. Rate and product details.

Lowering taxes, issuing more public debt, and spending more are all inflationary policies. These policies will all contribute to higher Treasury yields, which will send mortgage rates higher. Whether or not these scenarios play out in the coming months and years remains to be seen.

In all likelihood, we won't see Treasury yields and mortgage rates as low as they have been. The only way yields and rates will fall towards the recent record lows would be if the economy fell into another recession.

Treasury yields and mortgage rates move in the same direction. Right now, both are moving sharply higher. You can view the relationship between Treasury yields and mortgage rates for the past 10 years in the FRED Chart below.

 Courtesy of the Federal Reserve.