Today's mortgage rates

The expected rebound in mortgage rates appeared this week, with a large chunk of the declines of the last two weeks wiped out. Freddie Mac reported that the average offered rate for a conforming 30-year FRM rose by eight basis points (0.08%), rising back to 4.62%, just a shade below multi-year highs. Fifteen-year FRMs rebounded with a six basis point rise (0.06%), increasing to 4.07 percent for the week. Splitting the rise in fixed rates were hybrid 5/1 ARMs, which saw their average rate lifted by seven one-hundredths of a percentage point, landing at 3.83%.

With a strong economy, solid labor markets and firming inflation, interest rates continues to have little downside and are more than likely to rise in the coming weeks. The Fed raised short-term interest rates again this week and signaled that two more increases are on tap for the remainder of this year, so it's increasingly likely that higher rather than lower rates can be expected. Near-term, though, markets reacted well to the Fed's move, but we may see some reaction to any news of changing policy coming out of the European Central Bank meeting today. For the moment, and pending this, mortgage rates are likely to be fairly flat in the coming days.

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