Mortgage rates hit high for 2017 after big one-week spike

Bond yields move opposite to prices and influence long-term mortgage rates.

Mortgage rates are not directly tied to the federal funds rate, which is adjusted by the Fed's policymakers. That's because investors consider the Fed's move as a sign that the economy is getting stronger.

Rates are running a little less at some Cleveland-area banks compared with the 4.21 percent national average: Thursday's rate for a 30-year loan was 3.99 percent at Third Federal, 4 percent at Dollar Bank and 4.1 percent at Huntington. The best 30 year FHA fixed rate mortgages can be had for 4.100% at the bank with an April of 5.1885%. The benchmark rate stood at 3.68 percent a year ago and averaged 3.65 percent through 2016, the lowest level in records dating to 1971. "The strength of Friday's employment report and the outcome of next week's FOMC meeting are likely to set the direction of next week's survey rate".

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.23 percent this week with an average 0.4 point, up from last week when it averaged 3.14 percent.

According to Mortgage Bankers Association data, the share of mortgage applications taken by ARMs was the largest since October 2014.

Mortgage buyer Freddie Mac said Thursday the rate on 30-year, fixed-rate loans climbed to 4.21 percent from 4.10 percent last week. That's nearly $100 a month more than last July, when the average rate was 3.4 percent.

10 year loans are available starting at 3.250% and April of 3.456% today. A year ago, the 5-year ARM averaged 2.92 percent. The fee on 15-year loans also remained at 0.5 point.

  • Todd Kelly