The average rate on the 30-year, fixed-rate mortgage went up two basis points, the 15-year fixed increased three basis points and the 5/1 ARM jumped seven basis points, according to a NerdWallet survey of daily mortgage rates published Tuesday by national lenders.
Shorter-term interest rates, such as for the 5/1 ARM, tend to move up and down with expectations of Federal Reserve rate policy. Those expectations got a boost Sunday, when Janet Yellen, chair of the Federal Reserve, spoke at a banking seminar in Washington, D.C.
Yellen said she believes inflation will pick up at some point. The unspoken implication of her stance is that she is likely to support more increases in short-term interest rates, possibly as soon as when the Fed’s rate-setting committee meets in December.
After Yellen’s bullish remarks, short-term Treasury yields rose sharply. Interest rates on 5/1 ARMs followed.
MORTGAGE RATES TODAY, TUESDAY, OCT. 17:
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.
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