Rates Hit 4.67%
Mortgage rates jumped again to an average of 4.67%, up from last week’s 4.42%, Freddie Mac reported Thursday.
Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 4.67%. A year ago at this time, the 30-year FRM averaged 3.18%.
“Mortgage rates continued moving upward in the face of rapidly rising inflation as well as the prospect of strong demand for goods and ongoing supply disruptions,” said Sam Khater, Freddie Mac’s Chief Economist.
“Purchase demand has weakened modestly but has continued to outpace expectations. This is largely due to unmet demand from first-time homebuyers as well as a select few who had been waiting for rates to hit a cyclical low.”
Though refinance applications continue dropping, purchase application volume has held relatively steady.
“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,” said Mike Fratantoni, MBA Senior Vice President and Chief Economist.
“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.”
Additional findings from Thursday’s report:
- 15-year fixed-rate mortgage averaged 3.83% with an average 0.8 point.
- A year ago at this time, the 15-year FRM averaged 2.45%.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.50% with an average 0.3 point.
- A year ago at this time, the 5-year ARM averaged 2.84%.