RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

Mortgage Rates Still on the Rise, Forecast to Reach 3.4% by December

Home Industry News
By RISMedia Staff
October 21, 2021
Reading Time: 2 mins read

It’s been another week of increasing mortgage rates, with the average 30-year fixed-rate mortgage (FRM) coming in at 3.09%, according to the latest data from Freddie Mac. 

Mortgage details:

  • 30-year fixed-rate mortgage averaged 3.09% with an average 0.7 point for the week ending Oct. 21, 2021, up from last week’s 3.05%. Last year, the 30-year FRM averaged 2.80%.
  • 15-year fixed-rate mortgage averaged 2.33% with an average 0.7 point, up from last week’s 2.30%. Last year, the 15-year FRM averaged 2.33%.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.54% with an average 0.3 point, down slightly from last week’s 2.55%. Last year, the five-year ARM averaged 2.87%.

The takeaway:

Interest rates have hit their highest level since mid-May, but the housing market should remain relatively healthy despite their upward trajectory. 

“Mortgage rates continued to rise this week due to the trajectory of both the economy and the pandemic,” said Sam Khater, Freddie Mac’s chief economist, in a statement. “Even as the availability of existing homes is improving, prices remain high due to homebuyer demand and limitations on housing starts and permits resulting from the ongoing labor and material shortages. Despite these countervailing forces, we expect the housing market to remain strong as we head into the end of the year.”

According to realtor.com® manager of Economic Research George Ratiu, the industry expects that the Fed’s tapering of asset purchases, combined with rising inflation, will continue to drive rates higher. The company expects rates to reach 3.4% by December.

“The rate rose four basis points to 3.09%, as investors and markets are digesting the fact that the massive monetary stimulus of the past eighteen months has materialized in higher prices across the board,” said Ratiu in a statement.

“Real estate markets are settling into a more typical seasonal groove as we progress through October, with the overheated price growth of early 2021 cooling,” added Ratiu. “There are still more hopeful buyers than available homes for sale, even as properties are spending slightly longer on the market. In turn, price growth has slowed, rising 8.6% this past week compared to last year’s double-digit pace. However, rising mortgage rates are squeezing many first-time buyers’ budgets. Buyers of a median-priced home who lock in today’s rate will spend $145 per month more than they would have a year ago, adding over $1,700 to their yearly payments.”

Tags: Freddie MacHousing MarketIndustry NewsInterest RatesMortgage Ratesreal estate news
ShareTweetShare

RISMedia Staff

Related Posts

WATCH: The Art and Science of Negotiation
Agents

WATCH: The Art and Science of Negotiation

May 16, 2022
Biden Revives Housing Priorities in New Roadmap
Agents

Biden Revives Housing Priorities in New Roadmap

May 16, 2022
BHGRE Announces Affiliation of Green Lake, Wisconsin Firm Special Properties
Agents

BHGRE Announces Affiliation of Green Lake, Wisconsin Firm Special Properties

May 16, 2022
Don’t Get Burned: Fire Risk Database Informs Consumers
Agents

Don’t Get Burned: Fire Risk Database Informs Consumers

May 16, 2022
Mortgage Market Strain Starts to Squeeze Major Players
Agents

Mortgage Market Strain Starts to Squeeze Major Players

May 16, 2022
4 Tips to Instantly Improve Your Facebook Strategy
Agents

4 Tips to Instantly Improve Your Facebook Strategy

May 16, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

How Agents Turn Low Home Inventory Into a Marketing Advantage

By targeting the right prospects, creative messaging, and using proven marketing tactics, you can break through the crowded marketplace and... See How

Business Tip of the Day provided by

Recent Posts

  • WATCH: The Art and Science of Negotiation
  • Biden Revives Housing Priorities in New Roadmap
  • BHGRE Announces Affiliation of Green Lake, Wisconsin Firm Special Properties

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kitt Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.