According to the latest Freddie Mac, PMMS mortgage report, the Mortgage rates this week have increased above 3%
The 30-year fixed-rate mortgage went up 12 basis points from 2.98% last week to 3.10%. Last year same time, it averaged at 2.72%.
Freddie Mac’s chief economist, Sam Khater, said the mortgage rates are higher because of rising inflation and consumer spending.
He added that the homebuyers are fueling strong demand but the shortage in inventory shows no improvement in the rising home prices.
Economists at Freddie Mac said the previous week the 15-year fixed-rate mortgage averaged up at 2.39%, which last week was 2.27%, a year ago it was at 2.28%. The five-year ARM dropped three basis points to 2.49% same time last year it averaged at 2.85%.
Mortgage rates that move according to the 10-year Treasury yield, reached 2% in mid-Nov, moved up from 1.89% last week.
According to the Mortgage Bankers Association (MBA), this rate increase is impacting the refinancing activity.
There was a drop in refinance mortgage loan applications by 31% on the week ending Nov. 12, whereas, purchase applications slid down 6% around the same period.
MBA’s associate vice president of economic and industry forecasting, Joel Kan, said this is the seventh time that refi applications have decreased in two months. The MBA foresees mortgage rates to reach 4% by the end of 2022.
Reference Source: Housing Wire
