Mortgage Charges Tick Again Above 3% As Financial Restoration Continues
Freddie Mac’s chief economist said rates could continue to rise in the second half of the year after hitting all-time lows in January.
According to a market survey, mortgage rates rose above 3 percent for the first time in more than two months.
Freddie Mac chief economist Sam Khater said in a press release on Thursday that interest rates are expected to continue rising gradually in the second half of the year since the economy is recovering and inflation remains high.
“For those Homeowners who have not yet refinanced – and there remain many borrowers who could benefit from it – now is the time, ”said Khater in the statement.
The average interest rate on a 30-year fixed-rate mortgage last week was 3.02 percent. of 2.93 percent the previous week. It remained below the rate observed in the same period of the previous year: 3.13 percent.
15-year fixed-rate mortgage rates rose a tenth of a point this week to land at 2.34 percent. A year ago, the average rate was 2.59 percent.
The fees and points for each of these fixed rate loan types were 0.7.
Variable rate mortgages indexed to five-year US Treasuries have remained roughly constant at their low interest rates. They rose last week from 2.52 percent to 2.53 percent.
This data comes from the Primary Mortgage Market Survey, which focuses on conventional loans for borrowers who have excellent credit ratings and can repay the loan at 20 percent. Borrowers who don’t meet these criteria can see higher rates. The numbers do not reflect the closing costs.
Interest rates on 30-year loans fell to an all-time low in January but were through Fears of inflation in February and March.
Since then, rates have come back down to around 3 percent as the Federal Reserve has given assurances that it plans to do so short term measures to prop up the economy while keeping long-term inflation projections in check.
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