Mortgage Rates Trend Upward Again
Mortgage rates rose this week, following two weeks of declines. The average rate on 30-year, fixed-rate loans now clocks in at 3.85%, according to Freddie Mac.
Sam Khater, Freddie Mac’s chief economist, predicts this is just the first of many rate increases to come.
“Over the long-term, we expect rates to continue to rise as inflation broadens and shortages increasingly impact many segments of the economy,” Khater said. “However, uncertainty about the war in Ukraine is driving rate volatility that likely will continue in the short-term.”
The increase in rates didn’t slow mortgage applications, though. According to the Mortgage Bankers Association, both purchase loan and refinance applications increased 9% for the week.
“Purchase activity also increased, as prospective buyers acted on lower rates and the early start of the spring buying season,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “The average loan size remained close to record highs, with higher-balance loan applications continuing to dominate growth.”
Despite the rise in applications, the share of refinances did drop for the week, falling to just 49.5% of all loan activity.
More in mortgage & housing news
- Data from Zillow shows website traffic on vacation home listings has jumped considerably in the last two years. In January 2020, 27.7% of vacation markets had more views per listing than the country at large. In January of this year, it rose to 48.2%,
- The median listing price is now up 14.3% compared to last year, according to Realtor.com. Active inventory is down 20%, while new listings fell 3% for the week.
- A shocking 8.2% of all homes are now worth $1 million or more, according to a report from Redfin. That’s a significant increase over the 4.8% seen just two years ago.
- Foreclosure activity is on the upswing. According to ATTOM Data Solutions, foreclosure filings jumped 11% from a month ago and are now up 129% compared to one year ago.
This week in mortgage rates
Mortgage rates increased on all three major loan products this week.
Here’s how they shook out:
- Conforming 30-year, fixed-rate loans: 3.85% (up from 3.76%)
- 15-year, fixed-rate loans: 3.09% (up from 3.01%)
- 5/1 adjustable-rate loans: 2.97% (up from 2.91%)
Make sure to check back here next week for the latest mortgage interest rates and news.
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