Share
© ThitareeSarmkasat - iStock/Getty Images Plus
The 30-year fixed-rate mortgage jumped to a 5% average this week, the first time it’s been that high since 2011. Since the beginning of the year, mortgage rates have jumped by 1.8 percentage points and added about $400 to the average monthly mortgage payment for a median-priced home, Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS®, writes for the association’s blog.
Also, with inflation at a 40-year high, home buyers are finding they may need to adjust their budget to buy this spring. “As Americans contend with historically high inflation, the combination of rising mortgage rates, elevated home prices, and tight inventory are making the pursuit of homeownership the most expensive in a generation,” writes Sam Khater, Freddie Mac’s chief economist.
NAR predicts that rising borrowing costs will price out about 16 million households from the housing market this year. NAR has forecast home sales activity to drop about 10% in 2022.
Freddie Mac reports the following national averages with mortgage rates for the week ending April 14:
- 30-year fixed-rate mortgages: averaged 5%, with an average 0.8 point, rising from last week’s 4.72% average. A year ago, 30-year rates averaged 3.04%.
- 15-year fixed-rate mortgages: averaged 4.17%, with an average 0.9 point, rising from last week’s 3.91% average. A year ago, 15-year rates averaged 2.35%.
- 5-year hybrid adjustable-rate mortgages: averaged 3.69%, with an average 0.3 point, increasing from last week’s 3.56% average. A year ago, 5-year ARMs averaged 2.80%.