Mortgage rates are the highest since March 2020 | Work

In the second big jump in 2022, mortgage rates rose again to highs not seen since the start of the pandemic.

According to Freddie Mac, 30-year fixed-rate mortgages averaged 3.45% for the week to January 13, up from 3.22% last week. It has the highest equal temperament since it reached 3.5% in March 2020.

“Mortgage rates have risen for all mortgage types, and 30-year fixed-rate mortgages have risen almost a quarter percent since last week,” said Sam Carter, chief economist at Freddie Mac. rice field. “The rise in mortgage rates so far this year has not yet affected purchase demand, but given the surge in home prices, it is likely that demand will weaken in the near future,” he said.

“Despite the large number of cases, the mild effects of the Omicron wave indicate a brighter post-pandemic horizon, a sentiment that underpins a more bullish outlook for the economy,” Latiu said.

But with rising mortgage rates Record low inventory Rising home prices can drive some buyers out of the market.

Median homebuyers are paying about $ 219 more a month than they were a year ago at today’s rates, adding more than $ 2,600 to their annual home spending, Ratiu said.

“Buyers are in a pinch in their wallets as the prices of most consumer goods and services are rising,” Latiu said. “Affordability remains a central issue for first-time buyers this year.”

There are also signs that some homebuyers started shopping earlier than the normal spring buying season, according to Latiu.

According to the Mortgage Bankers Association, mortgage applications increased slightly last week from the previous week. Joel Kang, vice president of economic and industrial forecasting at the MBA, said he expects new mortgage applications to remain strong, as so many are considering buying a home. ..

Government-sponsored loan applications (an attractive option for first-time homebuyers and those with low down payments and credit scores) are also on the rise, with the Federal Housing Authority (FHA) loan and VA taking out loans.

“The housing market got a lot of attention and started in 2022,” Kang said. “The MBA expects strong growth in buying activity this year as vital momentum and a strong economy support housing demand, but the strength of growth is housing inventory to meet demand. Depends on growing more rapidly. “

Mortgage rates are the highest since March 2020 | Work

Source link Mortgage rates are the highest since March 2020 | Work

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