Mortgage rates shot back up after a one-week reversal of their upward trend, averaging 5.29% last week, Freddie Mac reported Thursday.
Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.29%, up from 5% last week. A year ago at this time, the 30-year FRM averaged 2.96%.
“Mortgage rates resumed their climb this week as the 30-year fixed reached its highest point since 2009,” said Sam Khater, Freddie Mac’s Chief Economist.
“While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months.”
Affordability dropped in Q1 2022, with monthly mortgage payments on the typical home rising to $1,383 (+30% YOY). Homeowners spent 18.7% of their income on mortgage payments, according to NAR.
“Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022. Given the extremely low inventory, we’re unlikely to see price declines, but appreciation should slow in the coming months,” said Lawrence Yun, NAR chief economist.
“Declining affordability is always the most problematic to first-time buyers, who have no home to leverage, and it remains challenging for moderate-income potential buyers, as well.”
Additional findings from Thursday’s report:
- 15-year fixed-rate mortgage averaged 4.52% with an average 0.8 point.
- A year ago at this time, the 15-year FRM averaged 2.30%.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.96% with an average 0.2 point.
- A year ago at this time, the 5-year ARM averaged 2.70%.