Mortgage rates jump to 2017 high

This article first appeared on MarketWatch:

Rates for home loans spiked along with a surge in Treasury yields as Federal Reserve officials guided market expectations toward an interest rate increase next week, mortgage provider Freddie Mac said Thursday.

The 30-year fixed-rate mortgage averaged 4.21%, up 11 basis points during the week. The 15-year fixed-rate mortgage averaged 3.42%, up from 3.32%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.23%, up from 3.14% last week.

Those rates don’t include fees associated with obtaining mortgage loans.

“For the first time in weeks, the 30-year mortgage rate moved with Treasury yields and jumped 11 basis points,” Freddie Chief Economist Sean Becketti said in a release. “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.”

Economists surveyed by MarketWatch are forecasting a strong nonfarm payrolls number on Friday, and most investors expect the Fed will raise rates by another quarter-percent next week.

While average rates are the highest so far in 2017, they’re still lower than long-time averages. And the 11-basis point jump during the week is a bit bigger than usual, but not unheard-of. Rates surged 14 basis points one week last December in the wake of the presidential election.