Mortgage Rates Rise Sharply on Expectations of Move by Fed

ZillowThe weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.

By Lauren Braun

Mortgage rates for 30-year fixed loans rose this week, with the rate borrowers were quoted on Zillow Mortgages at 3.83 percent Tuesday, up 17 basis points from last week.

The 30-year fixed mortgage rate rose steadily throughout the week before settling at the current rate.

"Mortgage rates moved decisively higher last week as the commentary of several Federal Open Market Committee members and an exceptionally strong jobs report solidified expectations for a December Fed rate hike," said Erin Lantz, vice president of mortgages at Zillow. "Markets will look for further signals about the strength of the economy in inflation and consumer confidence data in this holiday-shortened week."

Additionally, the 15-year fixed mortgage rate was 2.98 percent. For 5/1 ARMs, or adjustable-rate mortgages, the rate was 2.99 percent.

Check Zillow Mortgages for mortgage rate trends and up-to-the-minute mortgage rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.

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