Mortgage rates surged once again this week and could soon reach the 5% mark, according to the latest Freddie Mac data. (iStock)
Mortgage rates surged this week, with the 30-year loan surpassing the 4.5% mark and hitting its highest level since 2018, according to the latest data from Freddie Mac.
The 30-year fixed-rate mortgage surged to 4.67% for the week ending March 31, 2022, according to Freddie Mac’s Primary Mortgage Market Survey. This is up from 4.42% last week and from 3.18% last year.
“The Freddie Mac fixed rate for a 30-year loan increased again this week, jumping another 25 basis points to 4.67%, their highest level since December 2018,” Realtor.com Cheif Economist Danielle Hale said.
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Mortgage rates could hit 5% in the coming weeks
In addition to the 30-year loan, other mortgage terms also rose this week. The 15-year mortgage rate increased to 3.83%, which is up from 3.63% last week and 2.45% last year. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) also increased to 3.5%, up from 3.36% last week and 2.84% last year.
The 30-year mortgage is expected to continue rising and could soon hit 5% in the coming weeks, one economist said.
“Continuing on the recent trajectory would have mortgage rates hitting 5% within a matter of weeks, but longer-term rates have receded somewhat this week as investors reassess the economic outlook,” Hale said. “A very strong labor market in which job openings and worker quits remain near highs is making it difficult for firms to hire the workers that they need. This could slow the pace at which mortgage rates reach that 5% milestone, granting a temporary reprieve to home shoppers hoping to find a home and lock in a rate before they trend higher.”
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Higher rates not tempering homebuyer demand
As mortgage rates rise, homebuyer demand remains high, with first-time homebuyers continuing to enter the housing market.
“Mortgage rates continued moving upward in the face of rising inflation and the prospect of demand for goods amid ongoing supply disruptions,” Freddie Mac Chief Economist Sam Khater said. “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.”
If you are interested in buying a home or refinancing your current mortgage, you can contact Credible to speak to a home loan expert and get all of your questions answered.
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