The average prime 30-year fixed mortgage rate quoted on Zillow was flat last week as markets and lenders were largely quiet around the Christmas holiday. However, mortgage rates had risen sharply the previous week, matching their highest levels since late October. The last time mortgage rates were higher was in early July.

Lenders tend to price conservatively during the holidays – generally preferring to err on the side of caution when quoting consumer rates, so the data should be interpreted with due context. But the yield curve has flattened substantially over the past year, so some upward pressure was due. Despite three rate hikes by the Federal Reserve over the past year (four if one counts the last 13 months), the standard 30-year fixed mortgage rate ends 2017 about 20 basis points below where it stood at the end of 2016. It is difficult to imagine this continuing much into 2018.