Mortgage Rates Inch Toward 5%, While Refinances Slip Even Further
Mortgage rates continued to climb over the last week, averaging 4.67% on 30-year loans, according to Freddie Mac. That’s up from 4.42% last week and 3.18% a year ago.
“Mortgage rates jumped to their highest level in more than three years last week, as investors continue to price in the impact of a more restrictive monetary policy from the Federal Reserve,” explained Mike Fratantoni, senior vice president and chief economist at the Mortgage Bankers Association.
Applications to refinance a mortgage fell 15% as rates ticked upward, but according to MBA, purchase loan applications actually increased (by 1%) for the week.
“Even with the ongoing climb in rates, purchase application volumes were little changed last week,” Fratantoni said. “This is particularly auspicious, as we are now in the beginning of the spring homebuying season, and those shopping for homes are struggling with not only higher and more volatile mortgage rates, but also an ongoing shortage of homes on the market. Given these hurdles, it appears to be promising news that purchase application volume has not declined, as many potential buyers are likely feeling the squeeze in their purchasing power from the jump in rates.”
Refinances now make up just 40% of all mortgage activity. A year ago, that share was over 60%.
More in mortgage & housing news
- The S&P CoreLogic Case-Shiller Home Price index came out this week, showing a 19.2% uptick in home prices between January 2021 and January 2022. Phoenix, Tampa, and Miami had the highest jumps, with 32.6%, 30.8%, and 28.1% increases, respectively.
- A new report from Zillow reveals the impact of the gender wage gap on women’s homeownership capabilities. According to the analysis, women could afford 18% more of the housing market if they made as much money as men do. In some cities (like Minneapolis) it’s as high as 33%.
- Condo prices have hit a new record high, according to Redfin. The typical condo sold for $319,000 in February — up 22.7% from two years prior.
This week in mortgage rates
Mortgage rates increased across the board again this week. Here’s how those rates break down by loan type:
- Conforming 30-year, fixed-rate loans: 4.67% (up from 4.42%)
- 15-year, fixed-rate loans: 3.83% (up from 3.63%)
- 5/1 adjustable-rate loans: 3.50% (up from 3.36%)
Check back next week for the most up-to-date mortgage and housing news.
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