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Mortgage Rates Continue to Rise

Freddie Mac reports mortgage rates climbed again last week.

According to Market Watch, in the week ending Thursday, the average rate on a 30-year fixed-rate mortgage increased to 3.92% from 3.69% last week. A year ago this week, the average rate was 2.81%.

Average 15-year rates were 3.15%, up from 2.93% a week ago and 2.21% a year ago.

The average rate on a five-year Treasury-indexed hybrid adjustable-rate mortgage, or ARM, was 2.98%, up from 2.8% a week ago and from 2.77% in the same period last year.

“Mortgage rates jumped again due to high inflation and stronger than expected consumer spending,” Freddie Mac Chief Economist Sam Khater said.

“The 30-year fixed-rate mortgage is nearing 4%, reaching highs we have not seen since May 2019. As rates and house prices rise, affordability has become a substantial hurdle for potential homebuyers, especially as inflation threatens to place a strain on consumer budgets,” he said.

Expectations that the Federal Reserve will raise interest rates multiple times this year have also been driving increases in mortgage rates, which are closely tied to the 10-year U.S. Treasury.

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