Mortgage Rates Friday: Up, Along With Rents

Friday
Jan 12, 2018 at 3:27 PM

The average rate on a 30-year fixed-rate mortgage  went up two basis points,  the rate for the 15-year fixed also  rose two basis points  and the 5/1 ARM went  up by one basis point, according

Holden Lewis

The average rate on a 30-year fixed-rate mortgage  went up two basis points,  the rate for the 15-year fixed also  rose two basis points  and the 5/1 ARM went  up by one basis point, according to a NerdWallet survey of daily mortgage rates published by national lenders Friday.

The average rate on the 30-year fixed is  14 basis points higher than one week ago and two basis points lower than one year ago. A basis point is one one-hundredth of one  percent.

The week's sharp jump in mortgage rates " the  30-year fixed started the week at 4.11% " was capped off by a strong increase in the core consumer inflation rate. The core Consumer Price Index, accounting for all items except food and energy, went up 0.3% in December, according to the Bureau of Labor Statistics. That was the largest increase since January 2017, the BLS said. Core inflation rose 1.8% in 2017, which is below the Federal Reserve's target of 2%.

Rents rise

In unwelcome news for people who aspire to be homeowners someday, the inflation index for rent went up 0.4% in December, the BLS reported. Rental inflation was up 3.7% in 2017.

However, even as rents rise, it's still more affordable to rent than to buy in 76% of counties with populations of 1 million or more, according to ATTOM Data Solutions, a property database company. Renting a three-bedroom property is more affordable than buying a median-priced home in the 14 most-populated counties. Renting is cheaper than buying in 30 of the 39 counties with populations of 1 million or more, ATTOM   said.

'And when broken down by population rather than number of markets, this data shows that the majority of the U.S. population " 64% " live in markets that are more affordable to rent than to buy,' Daren Blomquist, vice president of ATTOM Data solutions, said in a news release.

MORTGAGE RATES TODAY, FRIDAY, JAN. 12:

(Change from 01/11)
30-year fixed: 4.24% APR (+0.02)
15-year fixed: 3.87% APR  (+0.02)
5/1 ARM: 4.34% APR (+0.01)

Get personalized mortgage rates


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.

 

More from NerdWallet

How much house can I afford? Compare mortgage rates 5 tips for finding the best mortgage lenders

Holden Lewis is a writer at NerdWallet. Email: hlewis@nerdwallet.com. Twitter: @HoldenL.

The article Mortgage Rates Friday: Up, Along With Rents originally appeared on NerdWallet.

Friday
Jan 12, 2018 at 3:27 PM

The average rate on a 30-year fixed-rate mortgage  went up two basis points,  the rate for the 15-year fixed also  rose two basis points  and the 5/1 ARM went  up by one basis point, according

Holden Lewis

The average rate on a 30-year fixed-rate mortgage  went up two basis points,  the rate for the 15-year fixed also  rose two basis points  and the 5/1 ARM went  up by one basis point, according to a NerdWallet survey of daily mortgage rates published by national lenders Friday.

The average rate on the 30-year fixed is  14 basis points higher than one week ago and two basis points lower than one year ago. A basis point is one one-hundredth of one  percent.

The week's sharp jump in mortgage rates " the  30-year fixed started the week at 4.11% " was capped off by a strong increase in the core consumer inflation rate. The core Consumer Price Index, accounting for all items except food and energy, went up 0.3% in December, according to the Bureau of Labor Statistics. That was the largest increase since January 2017, the BLS said. Core inflation rose 1.8% in 2017, which is below the Federal Reserve's target of 2%.

Rents rise

In unwelcome news for people who aspire to be homeowners someday, the inflation index for rent went up 0.4% in December, the BLS reported. Rental inflation was up 3.7% in 2017.

However, even as rents rise, it's still more affordable to rent than to buy in 76% of counties with populations of 1 million or more, according to ATTOM Data Solutions, a property database company. Renting a three-bedroom property is more affordable than buying a median-priced home in the 14 most-populated counties. Renting is cheaper than buying in 30 of the 39 counties with populations of 1 million or more, ATTOM   said.

'And when broken down by population rather than number of markets, this data shows that the majority of the U.S. population " 64% " live in markets that are more affordable to rent than to buy,' Daren Blomquist, vice president of ATTOM Data solutions, said in a news release.

MORTGAGE RATES TODAY, FRIDAY, JAN. 12:

(Change from 01/11)
30-year fixed: 4.24% APR (+0.02)
15-year fixed: 3.87% APR  (+0.02)
5/1 ARM: 4.34% APR (+0.01)

Get personalized mortgage rates


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.

 

More from NerdWallet

How much house can I afford? Compare mortgage rates 5 tips for finding the best mortgage lenders

Holden Lewis is a writer at NerdWallet. Email: hlewis@nerdwallet.com. Twitter: @HoldenL.

The article Mortgage Rates Friday: Up, Along With Rents originally appeared on NerdWallet.