Up, Up and Away…Mortgage Rates Rise Again
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Mortgage rates shot up again this week amid continued rising inflation and ongoing supply disruptions, according to the latest data from Freddie Mac released Thursday. The results of its Primary Mortgage Market Survey® (PMMS®), show the 30-year fixed-rate mortgage (FRM) averaged 4.67% this week, up from 4.42% last week.
This week’s data:
“Mortgage rates continued moving upward in the face of rapidly rising inflation as well as the prospect of strong demand for goods and ongoing supply disruptions,” said Sam Khater, Freddie Mac’s Chief Economist. “Purchase demand has weakened modestly but has continued to outpace expectations. This is largely due to unmet demand from first-time homebuyers as well as a select few who had been waiting for rates to hit a cyclical low.”
Danielle Hale, chief economist for Realtor.com, commented:
“The Freddie Mac fixed rate for a 30-year loan increased again this week. Continuing on the recent trajectory, would have mortgage rates hitting 5% within a matter of weeks, but longer-term rates have receded somewhat this week as investors reassess the economic outlook. A very strong labor market in which job openings and worker quits remain near highs is making it difficult for firms to hire the workers that they need. This could slow the pace at which mortgage rates reach that 5% milestone, granting a temporary reprieve to home shoppers hoping to find a home and lock in a rate before they trend higher.
This week’s data:
- 30-year fixed-rate mortgage averaged 4.67 percent with an average 0.8 point for the week ending March 31, 2022, up from last week when it averaged 4.42 percent. A year ago at this time, the 30-year FRM averaged 3.18 percent.
- 15-year fixed-rate mortgage averaged 3.83 percent with an average 0.8 point, up from last week when it averaged 3.63 percent. A year ago at this time, the 15-year FRM averaged 2.45 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.50 percent with an average 0.3 point, up from last week when it averaged 3.36 percent. A year ago at this time, the 5-year ARM averaged 2.84 percent.
“Mortgage rates continued moving upward in the face of rapidly rising inflation as well as the prospect of strong demand for goods and ongoing supply disruptions,” said Sam Khater, Freddie Mac’s Chief Economist. “Purchase demand has weakened modestly but has continued to outpace expectations. This is largely due to unmet demand from first-time homebuyers as well as a select few who had been waiting for rates to hit a cyclical low.”
Danielle Hale, chief economist for Realtor.com, commented:
“The Freddie Mac fixed rate for a 30-year loan increased again this week. Continuing on the recent trajectory, would have mortgage rates hitting 5% within a matter of weeks, but longer-term rates have receded somewhat this week as investors reassess the economic outlook. A very strong labor market in which job openings and worker quits remain near highs is making it difficult for firms to hire the workers that they need. This could slow the pace at which mortgage rates reach that 5% milestone, granting a temporary reprieve to home shoppers hoping to find a home and lock in a rate before they trend higher.