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The Fed didn't make a move at the March meeting, but what the Fed had to say about future policy has implications for mortgage rates.

The Fed didn't make a move at the March meeting, but what the Fed had to say about future policy has implications for mortgage rates.

Mortgage Rates Radar 11/10/2015: Rates Rise Substantially

Rates on the most popular mortgage types increased this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by 10 basis points (0.10 percent) to 4.00 percent. Conforming 5/1 Hybrid ARM rates increased by 14 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.16 percent.

"The employment report for October was unexpectedly strong," said Keith Gumbinger, HSH.com's vice president. "This came on the heels of a subtle change to the language that the Fed has used to describe the forward path for interest rates; this change suggested that a policy move may come at its next meeting in December. With some key data showing more economic strength of late, financial markets are positioning themselves to ‘get ahead of the Fed,’ and interest rates are rising."

Rates still 'extraordinarily' low

For borrowers, it's important to keep rising rates in perspective. For 2015 to date, the difference between the lowest average 30-year fixed rate and the highest is less than a half percentage point, and amounts to less than a $25-per-month increase on a $100,000 mortgage, and the increase from levels seen just a few weeks ago is even less than that.

"Mortgage rates may be rising but remain at extraordinarily low levels," adds Gumbinger. "Markets are simply adjusting to the increasing likelihood that the Fed will make a change before long, just as they did in June, and again to a lesser degree in September. More important for mortgage rates is the future path for the interest rates the Fed controls, which is expected to be a long, gradual incline once they get the first move out of the way, whenever that might be."

Average mortgage rates and points for conforming residential mortgages for the week ending November 10, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   4.00 percent
  • Average Points: 0.19

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.16 percent
  • Average Points: 0.09

Average mortgage rates and points for conforming residential mortgages for the previous week ending Nov. 3 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   3.90 percent
  • Average Points: 0.16

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.02 percent
  • Average Points: 0.10

Methodology

The Weekly Mortgage Rates Radar reports the average rates and points offered on conforming 30-year fixed-rate mortgages and conforming 5/1 ARMs. The weekly mortgage rate survey covers a large sample of mortgage lenders and is conducted over a Wednesday-to-Tuesday cycle, with data released every Wednesday. HSH.com’s survey helps consumers find the best rates on home loans in changing market conditions. Unlike mortgage rate surveys that report average rates only, the Weekly Mortgage Rates Radar’s inclusion of both average rates and average points provides a more accurate view of mortgage terms currently offered by lenders.

Every week, HSH.com conducts a survey of mortgage rate data for a wide range of consumer mortgage products including ARMs, FHA-backed and jumbo mortgages, as well as home equity loans and lines of credit from hundreds of direct lenders in the U.S. For information on additional loan products, visit HSH.com.

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