Mortgage rates jumped this week, with the 30-year fixed rate lending nearing 5%, according to the latest data by Freddie Mac.
The 30-year mortgage rose to 4.72% of the annual percentage rate (APR) for the week ending April 7, according to the Freddie Mac Primary Mortgage Market Survey. That’s up from 4.67% last week and 3.13% last year.
“Mortgage rates have risen 1.5 percentage points in the past three months alone, the fastest three-month rise since May 1994,” said Freddie Mac chief economist Sam Khater. “Rising mortgage rates have slowed buying activity, so the monthly payment for those looking to buy a home is up at least 20% from a year ago.”
Interest rates could keep going up in the coming months, but borrowers can still take advantage of current rates with a mortgage refinance. Visit Credible to find your personalized rate without affecting your credit score.
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Mortgage rates for other types of loans also rose this week. The 15-year mortgage rate rose to 3.91% from 3.83% Last week and 2.42% last year. And the five-year Treasury-indexed hybrid variable-rate mortgage (ARM) rose to 3.56%, from 3.5% last week and 2.92% last year.
“Investors are digesting remarks this week from a number of Federal Reserve chairs that echo concerns expressed by Chairman Powell that inflation is on an aggressive path that threatens to derail the economy by shrinking consumer spending,” said George Ratiu, head of economic research at Realtor.com. mentioned. “The Fed is using forward guidance to let markets know that the bank will take a much harder turn in its monetary tightening to stem what it implicitly recognizes is a case of runaway inflation.
“After spending most of 2021 downplaying inflationary concerns as ‘transient,’ the Fed finds itself behind the eight ball, having to unwind an unprecedented platform of quantitative easing,” Ratiu continued. “For lenders and mortgage originators, labor shortages resulting in strong job creation, combined with rising prices, are putting upward pressure on costs, driving higher rates. “
If you want to reduce your mortgage payment or shorten the term of your loan, you can consider refinancing. Visit Credible to compare multiple mortgage lenders at once and choose the one that suits you best.
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Mortgage rates on track to exceed 5%
Mortgage interest rates are rising and are expected to continue to do so over the coming year as the Fed continues to raise rates. Ratiu predicted that the 30-year mortgage rate will soon rise to 5%.
“At the end of the day, mortgage rates are on track to exceed 5%, a level not seen since February 2011, when the price of a typical home in the United States was just $166,000, less than the half the price of a typical home today,” he said. .
If you want to refinance your mortgage before rates hit 5%, you can contact Credible to speak to a mortgage expert and see if this is the right option for you.
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