Mortgage Rates Rise More Than 3% For First Time Since June: Freddie Mac Data
Interest rates have exceeded the annual percentage rate (APR) of 3% on a 30-year mortgage for the first time since June, according to the latest data from Freddie Mac.
The 30-year average mortgage rate broke the 3% mark to 3.01% for the week ending September 30, 2021, according to the Freddie Mac Primary Mortgage Market Survey. This is up from 2.88% last week and 2.88% last year.
“Mortgage rates rose on all types of loans this week as the 10-year US Treasury yield hit its highest level since June,” said Sam Khater, chief economist at Freddie Mac. “Many factors have led to this increase, including the Federal Reserve communicating that it would reduce its support for capital markets, widening inflation and emerging energy supply shortages which are exacerbating other labor shortages. of work and materials. “
Despite the recent jump, interest rates have generally hovered around historic lows, and many homeowners could still benefit from refinancing their mortgages. Visit Credible to find your personalized rate and see how much you could save on your loan amount.
Mortgage rates continue to rise
The 15-year fixed-rate mortgage also rose to 2.28% from 2.15% the week before, but still down from 2.36% last year. The five-year Treasury-indexed variable-rate hybrid mortgage fell from 2.43% last week to 2.48%. Last year, the five-year MRA averaged 2.9%. And, economists predict that this interest rate hike could continue.
“We expect mortgage rates to continue to rise modestly, which will likely impact home prices, causing them to slow slightly after rising over the past year,” Khater said.
If you want to take out a mortgage or refinance before current rates go up, visit Credible to compare several mortgage lenders and choose the one that offers the best interest rates to lower your mortgage payments. You can get pre-approved in minutes without affecting your credit score.
Rising rates signal an improving economy
The latest interest rate hike marks the largest one-week hike since February and ended seven straight weeks of rate stagnation. Economists predict that interest rate hikes could continue and add that this is a sign of an improving economy.
“These increases were caused by the recognition that the economy is doing well and that growth is likely to continue,” said Danielle Hale, chief economist at Realtor.com. This sentiment was reinforced by the Fed’s statement last week that the economy had made enough progress towards economic targets that a gradual reduction in asset purchases could soon be warranted. Potential for surprises and rate volatility, the likely trend in the near term is for rates to rise. “
Borrowers considering refinancing could reduce their monthly mortgage payments by resorting to refinancing before rates rise further. Contact Credible to speak to a mortgage expert and get all your questions answered.
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