Home mortgage rates climb to near 4%
Freddie Mac's latest data shows 30-year fixed-rate averages reaching highs not seen in years
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Home mortgage rates continue to climb upward, and the average 30-year fixed-rate is now approaching 4% according to the latest data from Freddie Mac.
The organization's Primary Mortgage Market Survey for this week shows the average rate for a 30-year fixed-rate mortgage hit 3.92%, up from 3.69% last week. The average rate for the same product a year ago was at 2.81%.
Signage stands outside the Freddie Mac headquarters in McLean, Virginia, U.S., on Tuesday, Oct. 1, 2019. (Photographer: Andrew Harrer/Bloomberg via Getty Images / Getty Images)
"Mortgage rates jumped again due to high inflation and stronger than expected consumer spending," Freddie Mac's chief economist, Sam Khater, said in a statement. "The 30-year fixed-rate mortgage is nearing four percent, reaching highs we have not seen since May 2019."
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The average rate for a 15-year fixed-rate mortgage is also up, reaching 3.15% after sitting at 2.93% the week before. The same week in 2021, the 15-year rate averaged 2.21%.
A sale pending sign is displayed outside a residential home for sale in East Derry, N.H. (AP Photo/Charles Krupa, File (AP Photo/Charles Krupa, File / AP Newsroom)
Adjustable-rate mortgages climbed to an average rate of 2.98%, up from 2.8% from last week's PMMS and from 2.77% a year ago.
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"As rates and house prices rise, affordability has become a substantial hurdle for potential homebuyers," Khater said. "Especially as inflation threatens to place a strain on consumer budgets."
People are showing renewed interest in the housing market as the latest figures show a resurgence in mortgage applications last week not seen since last April. (AP Photo/Michael Conroy, File) (Michael Conroy / AP Newsroom)
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Additional data released this week shows the increase in rates has caused a decrease in people interested in filing mortgage applications. The average loan size also hit a new high, showing a continued trend of more would-be buyers being priced out of the market.
The Mortgage Banker's Association's weekly survey results released Wednesday showed that mortgage loan applications fell 5.4% from last week, but the average loan size hit a new record of $453,000.