Mortgage Rates Post Big Jump This Week

January 14, 2022

Inflation continues to press on mortgage rates. The 30-year fixed-rate mortgage averaged 3.45% this week, up from last week’s 3.22% average, Freddie Mac reports.

“Mortgage rates rose across all mortgage loan types, with the 30-year fixed-rate mortgage increasing by almost a quarter of a percent from last week,” says Sam Khater, Freddie Mac’s chief economist. “This was driven by the prospect of a faster than expected tightening of monetary policy in response to continued inflation exacerbated by uncertainty in labor and supply chains. The rise in mortgage rates so far this year has not yet affected purchase demand, but given the fast pace of home price growth, it will likely dampen demand in the near future.”

Despite rising mortgage rates, owning a home remains more affordable than renting, the National Association of REALTORS® reports. The monthly mortgage for owning a median-priced home is $1,260 compared to the average rent of $1,540, NAR notes on its Economists’ Outlook blog.

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 13:

  • 30-year fixed-rate mortgages: averaged 3.45%, with an average 0.7 points, rising from last week’s 3.22% average. Last year at this time, 30-year rates averaged 2.79%.
  • 15-year fixed-rate mortgages: averaged 2.62, with an average 0.7 points, increasing from last week’s 2.43% average. A year ago, 15-year rates averaged 2.23%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.57%, with an average 0.3 points, rising from last week’s 2.41% average. A year ago, 5-year ARMs averaged 3.12%.

Freddie Mac reports average points along with commitment rates to better reflect the total upfront cost of obtaining the mortgage.

 

 

 

 

Year-End Mortgage Rates at 3.11%

December 30, 2021

Mortgage rates stayed low for the final week of 2021, but housing analysts largely predict rates will be heading up in the coming weeks.

“Mortgage rates have been effectively been moving sideways despite the increase in new COVID cases,” says Sam Khater, Freddie Mac’s chief economist. “This is because incoming economic data suggests that the economy remains on firm ground, particularly cyclical industries like manufacturing and housing. Moreover, low interest rates and high asset valuations continue to drive consumer spending. While we do expect rates to rise, the push the first-time home buyer demographic that’s been propelling the purchase market will continue in 2022 and beyond.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 30:

  • 30-year fixed-rate mortgages: averaged 3.11%, with an average 0.7 point, rising from last week’s 3.05% average. Last year at this time, 30-year rates averaged 2.67%.
  • 15-year fixed-rate mortgages: averaged 2.33%, with an average 0.7 point, up from last week’s 2.30% average. A year ago, 15-year rates averaged 2.17%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.41%, with an average 0.5 point, increasing from last week’s 2.37% average. A year ago, 5-year ARMs averaged 2.71%.

Freddie Mac reports national commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.

 

 

Holiday Gift for Home Buyers: Big Drop in Mortgage Rates

December 23, 2021

The 30-year fixed-rate mortgage posted a big drop this week, falling to a 3.05% average, Freddie Mac reports.

“The market volatility resulting from the COVID-19 omicron variant is causing mortgage rates to decrease,” says Sam Khater, Freddie Mac’s chief economist. “As the year comes to a close, the housing market is proceeding steadily. However, rates are expected to increase in 2022 which will impact home buyer demand as well as refinance activity.”

National Association of REALTORS® Chief Economist Lawrence Yun predicts that 30-year fixed-rate mortgages will average 3.7% by the end of 2022.

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 23:

  • 30-year fixed-rate mortgages: averaged 3.05%, with an average 0.7 point, dropping from last week’s 3.12% average. Last year at this time, 30-year rates averaged 2.66%.
  • 15-year fixed-rate mortgages: averaged 2.30%, with an average 0.7 point, down from last year when it averaged 2.34%. A year ago, 15-year rates averaged 2.19%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.37%, with an average 0.4 point, dropping from last week’s 2.45% average. A year ago, 5-year ARMs averaged 2.79%.

Freddie Mac reports commitment rates along with average rates to better reflect the total upfront cost of obtaining the mortgage.

 

 

 

 

 

 

Inflation Drives Mortgage Rates Over 3%

November 19, 2021

The 30-year fixed-rate mortgage was back above 3% this week, and economists believe rates will continue to increase over the next few months.

“The combination of rising inflation and consumer spending is driving mortgage rates higher,” says Sam Khater, Freddie Mac’s chief economist. “Shoppers looking to buy a home are fueling a strong demand while ongoing inventory shortages are not improving in the presence of higher home prices. This reality illustrates the challenging situation facing the housing market.”

The 30-year fixed-rate mortgage averaged 3.10% this week, Freddie Mac reports. The National Association of REALTORS® is forecasting that rates will increase to 3.50% by the middle of 2022.

“With more homes to hit the market and higher mortgage rates, expect the housing market to slow down in 2022 but remain above the pre-pandemic level,” Nadia Evangelou, NAR’s senior economist and director of forecasting, writes for the association’s blog.

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 18:

  • 30-year fixed-rate mortgages: averaged 3.10%, with an average 0.7 point, rising from last week’s 2.98% average. Last year at this time, 30-year rates averaged 2.72%.
  • 15-year fixed-rate mortgages: averaged 2.39%, with an average 0.6 point, increasing from last week’s 2.27% average. A year ago, 15-year rates averaged 2.28%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.49%, with an average 0.3 point, dropping from last week’s 2.53% average. A year ago, 5-year ARMs averaged 2.85%.

Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.

 

 

 

Mortgage Rates Dip Back Below 3%

November 12, 2021

Home buyers and homeowners got another chance this week to lock in historically low rates. The 30-year fixed-rate mortgage averaged 2.98%, Freddie Mac reports.

“Despite the re-acceleration of economic growth, the recent bond rally drove mortgage rates down for the second consecutive week,” says Sam Khater, Freddie Mac’s chief economist. “These low mortgage rates, combined with the tailwind of first-time home buyers entering the market, means that purchase demand will remain strong into next year. However, affordability pressures continue to be an ongoing concern for home buyers.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 10:

  • 30-year fixed-rate mortgages: averaged 2.98%, with an average 0.7 point, dropping from last week’s 3.09% average. Last year at this time, 30-year rates averaged 2.84%.
  • 15-year fixed-rate mortgages: averaged 2.27%, with an average 0.6 point, dropping from last week’s 2.35% average. A year ago, 15-year rates averaged 2.34%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.53%, with an average 0.4 point, dropping from last week’s 2.54% average. A year ago, 5-year ARMs averaged 3.11%.

Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.

 

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Mortgage Rates Post Temporary Drop

November 5, 2021

Offering slight relief to home buyers this week, the 30-year fixed-rate mortgage fell to a 3.09% average. But rates may rise again soon.

Housing analysts largely expect mortgage rates to increase in the following months due to the Federal Reserve’s announcement this week that it will slowly reduce its monthly bond purchases.

“While mortgage rates fell after several weeks on the rise, we expect future upticks due to strong economic data and as the Federal Reserve pulls back on its stimulus,” says Sam Khater, Freddie Mac’s chief economist. “That said, the housing market remains favorable for consumers, as rates remain below pre-pandemic levels and continue to support sustainable purchase and refinance opportunities.”

The National Association of REALTORS® forecasts the 30-year fixed-rate mortgage to average 3.5% by the second quarter of 2022.

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 4:

  • 30-year fixed-rate mortgages: averaged 3.09%, with an average 0.7 points, falling from last week’s 3.14% average. Last year at this time, 30-year rates averaged 2.78%.
  • 15-year fixed-rate mortgages: averaged 2.35%, with an average 0.6 points, decreasing from last week’s 2.37% average. A year ago, 15-year rates averaged 2.32%.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgages: averaged 2.54%, with an average 0.3 points, dropping from last week’s 2.56% average. A year ago, 5-year ARMs averaged 2.89%.

Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.

Source: 
Freddie Mac and “Instant Reaction: Mortgage Rates, November 4, 2021,” National Association of REALTORS® Economists’Outlook blog
 

 

Experts: Rising Rates Won’t Deflate Buyer Demand

October 22, 2021

The 30-year fixed-rate mortgage moved up for the second consecutive week, averaging 3.09%, Freddie Mac reports.

“Mortgage rates continued to rise this week due to the trajectory of both the economy and the pandemic,” says Sam Khater, Freddie Mac’s chief economist. “Even as the availability of existing homes is improving, prices remain high due to home buyer demand and limitation on housing starts and permits resulting from the ongoing labor and material shortages.”

Freddie Mac economists, the National Association of REALTORS®, and other housing groups are projecting the housing market to remain strong for the rest of the year.

Housing demand will continue to be high, even as mortgage rates move higher. NAR is forecasting mortgage rates to average 3.3% for the last quarter of 2021.

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 21:

  • 30-year fixed-rate mortgages: averaged 3.09%, with an average 0.7 point, rising from last week’s 3.05% average. Last year at this time, 30-year rates averaged 2.80%.
  • 15-year fixed-rate mortgages: averaged 2.33%, with an average 0.7 point, increasing from last week’s 2.30% average. A year ago, 15-year ARMs averaged 2.33%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.54%, with an average 0.3 point, dropping slightly from last week’s 2.55% average. A year ago, 5-year ARMs averaged 2.87%.

Freddie Mac reports commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.

 

 

 

 

 

Mortgage Rates Back Above 3%

October 15, 2021

The 30-year fixed-rate mortgage rose sharply this week, averaging 3.05%. That marks the highest average since April, according to Freddie Mac’s mortgage market survey.

As inflationary pressure builds due to the ongoing pandemic and tightening monetary policy, we expect rates to continue a modest upswing,” says Sam Khater, Freddie Mac’s chief economist. “Historically speaking, rates are still low, but many potential home buyers are staying on the sidelines due to high home price growth. Rising mortgage rates combined with growing home prices make affordability more challenging for potential home buyers.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 14:

  • 30-year fixed-rate mortgages: averaged 3.05%, with an average 0.7 point, rising from 2.99% last week. A year ago, 30-year rates averaged 2.81%.
  • 15-year fixed-rate mortgages: averaged 2.30%, with an average 0.7 point, increasing from last week’s 2.23% average. A year ago, 15-year rates averaged 2.35%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.55%, with an average 0.2 point, increasing from last week’s 2.52% average. A year ago, 5-year ARMs averaged 2.90%.

Freddie Mac reports average commitment rates along with points to better reflect the total upfront cost of obtaining a mortgage.

Source: 
Freddie Mac and “Instant Reaction: Mortgage Rates, October 14, 2021,” National Association of REALTORS® Economists’ Outlook blog (Oct. 14, 2021)

 

 

 

 

Mortgage Rates Unexpectedly Dip Below 3%

October 8, 2021

Home buyers have another shot at snagging mortgage rates under 3% this week. The 30-year fixed-rate mortgage fell to 2.99%, defying expectations that below 3% rates were now gone.

The Federal Reserve recently warned that it will soon begin tapering its bond purchases, which is expected to move rates up. The National Association of REALTORS® is predicting that the 30-year fixed-rate mortgage will average 3.5% by mid-2022.

But over recent weeks, mortgage rates have remained just above or just below 3%.

“Mortgage rates continue to hover at around 3% again this week due to rising economic and financial market uncertainties,” says Sam Khater, Freddie Mac’s chief economist. “Unfortunately, with the expectation that both mortgage rates and home prices will continue to rise, competition remains high and housing affordability is declining.”

Still, Nadia Evangelou, NAR’s senior economist and director of forecasting, writes on the association’s blog that even if mortgage rates do climb to 3.5%, that is still a historical low. Demand for housing is expected to remain robust. NAR is forecasting about 6 million existing homes to be sold in 2022, about the same as last year.

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 6:

  • 30-year fixed-rate mortgages: averaged 2.99%, with an average 0.7 point, falling from last week’s 3.01% average. Last year at this time, 30-year rates averaged 2.87%.
  • 15-year fixed-rate mortgages: averaged 2.23%, with an average 0.7 point, dropping from last week’s 2.28% average. A year ago, 15-year rates averaged 2.37%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.52%, with an average 0.3 point, rising from last week’s 2.48% average. A year ago, 5-year ARMs averaged 2.89%.

Freddie Mac reports average commitment rates along with average points to reflect the total upfront cost of obtaining the mortgage.

 

 

 

 

Mortgage Rates Back Above 3%. Will They Keep Rising?

October 1, 2021

The 30-year fixed-rate mortgage averaged 3.01% this week, posting a sharp rise after spending nearly four months below 3%. Economists expect mortgage rates to continue to increase modestly over the next few months.

“Mortgage rates rose across all loan types this week as the 10-year Treasury yield reached its highest point since June,” says Sam Khater, Freddie Mac’s chief economist. “Many factors led to this increase, including the Federal Reserve communicating that it will taper its support of the capital markets, the broadening of inflation, and emerging energy supply shortages, which compound other labor and materials shortages.”

An increase in mortgage rates over the next few months—even though expected to be slight—“will likely have an impact on home prices, causing them to moderate slightly after increasing over the last year,” Khater adds.

Still, mortgage rates are hovering near their record lows. “Consumers shouldn’t panic,” Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, writes on the association’s blog. “Keep in mind that even though rates will increase in the following months, these rates will still be historically low.” NAR forecasts the 30-year fixed-rate mortgage to average 3.5% by mid-2022.

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 30:

  • 30-year fixed-rate mortgages: averaged 3.01%, with an average 0.7 point, up from a 2.88% average last week. A year ago, 30-year rates averaged 2.88%.
  • 15-year fixed-rate mortgages: averaged 2.28%, with an average 0.6 point, increasing from last week’s 2.15% average. A year ago, 15-year rates averaged 2.36%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.48%, with an average 0.3 point, increasing from last week’s 2.43% average. A year ago, 5-year ARMs averaged 2.90%.

Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.

 

Mark Wilmot Realtor® Compass Real Estate

Ventura/L.A. Counties

Lic#01733107 805-279-3038

www.BeachBumLiving.com/ www.MarkWilmot.com/ www.BeachBumHomes.com

 



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