Economic research

Mortgage rates rise again, leading to higher monthly payments

Freddie Mac Mortgage Rates – March 31, 2022

What happened to mortgage rates this week:

Freddie Mac’s fixed rate for a 30-year loan rose again this week, jumping another 25 basis points to 4.67%, its highest level since December 2018. Continuing on the recent trajectory, rates mortgages would reach 5% in a few weeks. , but longer-term rates have pulled back somewhat this week as investors reassess the economic outlook. A very strong labor market in which job vacancies and worker resignations remain near record highs makes it difficult for companies to hire the workers they need. That could slow the pace at which mortgage rates reach that 5% milestone, giving temporary reprieve to homebuyers hoping to find a home and lock in a rate before they trend higher.

What does that mean:

Already, house prices have continued their recent ascent, with sale price of houses according to Case-Shiller accelerating and home asking prices hit a new high of $405,000. Rising mortgage rates are an additional consideration for buyers, while rising costs are already widespread for other budget items such as groceries and gas. With rents continue to rise at a double-digit rate Nationally and in many markets, buyers remain motivated. For today’s homebuyers, who are financing 80% of a home at the median listing price, the monthly mortgage payment is up more than $440 or more than 36% from a year ago. year. The sharp increase in costs is likely to drive the price down for some buyers and may lead to more options and less competition for homebuyers who can afford to stick with their home search.

Danielle HaleDanielle Hale

Danielle Hale