Mortgage Rates Hit Highest Point in 13 Years

Mortgage Weekly Update

Mortgage rates are continuing their upward climb. According to the latest numbers from Freddie Mac, the average rate on 30-year, fixed-rate loans is now 5.27% — up from 5.1% last week and 2.96% a year ago. It’s the highest rate seen since 2009.

Despite the uptick, overall mortgage applications actually increased for the week. The Mortgage Bankers Association reported a 2.5% bump in application volume and a 4% increase in purchase loans alone.

“Purchase applications increased for conventional, FHA, and VA loans and were up 4% overall,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “This is potentially a good sign for the spring home buying season, which has seen a slow start thus far. The purchase market remains challenged by low levels of housing inventory and rapid home price gains, as well as the affordability hit from higher mortgage rates that are forcing prospective buyers to factor in higher monthly payments.”

Fortunately, if higher mortgage rates continue, they could help tamp down price growth and keep things in check.

As Sam Khater, Freddie Mac’s chief economist, put it, “While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months.”

More in mortgage & housing news

  • Data from shows that more homebuyers are shopping outside their metros. In the first quarter of 2022, nearly 60% of all listing views came from buyers outside the home’s metro area. That’s a jump of almost 5% over the last year.
  • According to an analysis from Redfin, some of the hottest housing markets are ones with the highest inflation rates. In Phoenix, for example, inflation is up 11% in the last year — the highest of all metros analyzed. The city was also the second-most popular spot for homebuyers looking outside their market last quarter. Miami — the top city for migrating homebuyers — has an inflation rate of almost 10%. 
  • A report from Zillow shows that homes with eco-friendly features sell up to 10 days faster than those without. Properties with electric vehicle chargers and drought-resistant landscaping sell even faster. 

This week in mortgage rates

Mortgage rates increased across the board this week. Here’s how average rates broke down by loan type:

Check back next week for the most up-to-date mortgage and housing news.

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By Aly Yale / May 5th, 2022 / Categories: / Tags:

Aly Yale

Aly J. Yale is a freelance writer focusing on real estate, mortgage, and the housing market. Her work has been featured in Forbes, Bankrate, The Motley Fool, Business Insider, The Balance, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from Texas Christian University's Bob Schieffer College of Communication with a major in radio-TV-film and news-editorial journalism. Connect with her at or on Twitter at @AlyJwriter.