Freddie Mac Mortgage Rates – March 31, 2022
What Happened to Mortgage Rates This Week:
The Freddie Mac fixed rate for a 30-year loan increased again this week, jumping another 25 basis points to 4.67%, their highest level since December 2018. Continuing on the recent trajectory, would have mortgage rates hitting 5% within a matter of weeks, but longer term rates have receded somewhat this week as investors reassess the economic outlook. A very strong labor market in which job openings and worker quits remain near highs is making it difficult for firms to hire the workers that they need. This could slow the pace at which mortgage rates reach that 5% milestone, granting a temporary reprieve to home shoppers hoping to find a home and lock in a rate before they trend higher.
What Does this Mean:
Already, home prices have continued their recent climb, with home sales prices according to Case-Shiller accelerating and home asking prices hitting a new high of $405,000. Rising mortgage rates are an added consideration for buyers, when rising costs are already widespread for other budget items such as groceries and gas. With rents continuing to rise at a double-digit pace nationwide and in many markets, buyers remain motivated. For today’s home shoppers, financing 80% of a home at the median listing price, the monthly mortgage payment is up more than $440 or more than 36% compared to a year ago. The steep increase in costs is likely to price out some buyers, and may lead to more options and less competition for home shoppers who can afford to stick with their home search.
