RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
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
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Mortgage Rates Surge to Highest Level in 3 Years

Home Agents
By RISMedia Staff
March 24, 2022
Reading Time: 2 mins read
Mortgage Rates Surge to Highest Level in 3 Years

This week, the 30-year fixed-rate mortgage average increased from 4.16% last week to 4.42% this week–the highest level its reached since January of 2019, according to Freddie Mac’s Prime Mortgage Market Survey (PMMS), released Thursday.

Mortgage rates across all loan types continued to move up, as rising inflation, escalating geopolitical uncertainty and the Federal Reserve’s actions are driving rates higher and weakening consumers’ purchasing power, Freddie Mac stated. In short, the rise in mortgage rates, combined with continued house price appreciation, is increasing monthly mortgage payments and quickly affecting homebuyers’ ability to keep up with the market, the enterprise stated.

Key findings:

  • 30-year fixed-rate mortgage averaged 4.42% with an average 0.8 point for the week ending March 24.
  • Up from last week’s average of 4.16%
  • The same week in 2021 its average was 3.17%
  • 15-year fixed rate mortgage averaged 3.63% with an average 0.8 point
  • Its average last week was 3.39
  • The same week in 2021 its average was 2.45%
  • 5-year Treasury indexed hybrid ARM averaged 3.36% with an average 0.3 point
  • This is up from last week’s average, 3.19%
  • Last year it averaged 2.84%

The takeaway:

“The Freddie Mac fixed rate for a 30-year loan continued its ascent this week, following the upward path of the 10-year Treasury which reached the highest level since May 2019,” said George Ratiu, manager of economic research at realtor.com®. “Investors reacted to Federal Reserve Chairman Powell’s remarks at the National Association for Business Economics, in which he acknowledged that inflation is ‘much too high,’ and mentioned the option of larger 50 basis point increases in the funds rate at the next meetings. His comments made clear that the central bank feels the current inflation trajectory is unacceptable, but didn’t answer the question of how efficient the bank will be in stemming runaway prices without causing broader pains in employment markets, or pushing the economy into a recession. The main takeaway is that mortgage rates are likely to push toward 5.0% before the end of the year, with lenders anecdotally reporting quotes around 4.75% for the 30-year fixed rate.”

Ratiu continued, “Real estate markets reached unprecedented territory during the past two years of the pandemic. From the shock of never-before-seen mass quarantines and towering job losses, to the eye-watering monetary and fiscal stimulus, American homes played a central role, serving as shelter, work places, virtual schools, gyms and safe havens. Forbearance measures and rock-bottom mortgage rates ensured that families kept their abodes, and enabled many to buy their first home. However, the window of record-breaking mortgage rates has closed, and the road ahead points to a return toward mortgage rates more typical of the past two decades. For buyers and sellers, this spring will offer a period of transition, in which high prices will combine with rising interest rates to challenge budgets already contending with high inflation. The bottom line is that at today’s rate, the buyer of a median-priced home is spending more than $300 per month more on their monthly payment than they did a year ago. Predictably, we’re seeing early signs of market adjustment, with sales of both new and existing homes down.”

Tags: Federal ReserveFreddie MacGeorge RatiuInflationJerome PowellMortgage RatesNational Association for Business EconomicsReal Estaterealtor.com®Treasury
ShareTweetShare

RISMedia Staff

Related Posts

MLS’s Launch Industry-Centric Consumer Portal ‘Nestfully’
Latest News

MLS’s Launch Industry-Centric Consumer Portal ‘Nestfully’

March 29, 2023
Help Your Agents Get Ahead With Your REALTOR® Store
Agents

Help Your Agents Get Ahead With Your REALTOR® Store

March 29, 2023
Report: West Not Best and East Not Least in YoY Housing Prices
Agents

Report: West Not Best and East Not Least in YoY Housing Prices

March 29, 2023
NAR Broker Tip of the Month: Mark Your Calendars for REALTOR® Volunteer Days
Agents

NAR Broker Tip of the Month: Mark Your Calendars for REALTOR® Volunteer Days

March 29, 2023
Outstanding Associate and Community Leader Recognized by F.C. Tucker Company
Agents

Outstanding Associate and Community Leader Recognized by F.C. Tucker Company

March 29, 2023
A Deal ‘Decades in the Making’: Behind the Howard Hanna | Coach Realtors Merger
Agents

A Deal ‘Decades in the Making’: Behind the Howard Hanna | Coach Realtors Merger

March 28, 2023

Leave a Reply Cancel reply

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

Tip of the Day

Why Ousting Agents Who Aren’t the Right Fit Is as Crucial as Recruiting Ones Who Are

When someone isn’t in sync with the established culture of an office, it can cause morale issues over time if not addressed. Here, industry leaders share advice on how to address letting agents go when they aren’t the right fit for the company. Read more.

Business Tip of the Day provided by

Recent Posts

  • MLS’s Launch Industry-Centric Consumer Portal ‘Nestfully’
  • Help Your Agents Get Ahead With Your REALTOR® Store
  • Report: West Not Best and East Not Least in YoY Housing Prices

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 Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • 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
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

x
X