I'm Greg McBride, senior financial analyst with Bankrate.com and here is your weekly look at mortgage rates.
Mortgage rates increased for a second consecutive week, rising this week following the Federal Reserve's announcement that a tapering of its bond purchases would begin in January. The benchmark 30-year fixed mortgage rate moved up to 4.63 percent, which remains a three-month high. The larger jumbo 30-year fixed rate also increased, and is a touch higher at 4.67 percent.
The initial rates offered on adjustable-rate mortgages also moved higher. The popular five-year adjustable increased to 3.43 percent, while the seven-year ARM jumped to 3.81 percent. It should be noted that these are the rates that are in effect for the initial years of the loan – five years and seven years, respectively – and are a totally different animal from what happens thereafter. Borrowers who currently have adjustable-rate mortgages are not seeing upward rate adjustments, and likely won't, until the Federal Reserve begins to actively boost short-term interest rates. Until then, the increases in rates are limited to fixed-rate mortgages and the initial rates offered on adjustable mortgages.
Whether mortgage rates are rising or falling, always be sure to shop around for the best mortgage terms. To find the lowest mortgage rates in your area, use the free search engine at Bankrate.com.
I'm Greg McBride.