Garman Homes founder and CEO Alaina Money Garman discusses the housing market and what homeowners are looking for as the supply chain crisis rages on.
Home mortgage rates continue to climb upward, and the average 30-year fixed-rate is now approaching 4% according to the latest data from Freddie Mac.
The organization’s Primary Mortgage Market Survey for this week shows the average rate for a 30-year fixed-rate mortgage hit 3.92%, up from 3.69% last week. The average rate for the same product a year ago was at 2.81%.
Signage stands outside the Freddie Mac headquarters in McLean, Virginia, U.S., on Tuesday, Oct. 1, 2019. (Photographer: Andrew Harrer/Bloomberg via Getty Images / Getty Images)
“Mortgage rates jumped again due to high inflation and stronger than expected consumer spending,” Freddie Mac’s chief economist, Sam Khater, said in a statement. “The 30-year fixed-rate mortgage is nearing four percent, reaching highs we have not seen since May 2019.”
HOUSING INFLATION, SUPPLY CHAIN CREATE BUILDERS’ PERFECT STORM
The average rate for a 15-year fixed-rate mortgage is also up, reaching 3.15% after sitting at 2.93% the week before. The same week in 2021, the 15-year rate averaged 2.21%.
A sale pending sign is displayed outside a residential home for sale in East Derry, N.H. (AP Photo/Charles Krupa, File (AP Photo/Charles Krupa, File / AP Newsroom)
Adjustable-rate mortgages climbed to an average rate of 2.98%, up from 2.8% from last week’s PMMS and from 2.77% a year ago.
CALIFORNIANS HEAD SOUTH OF THE BORDER TO FIND MORE AFFORDABLE HOUSING
“As rates and house prices rise, affordability has become a substantial hurdle for potential homebuyers,” Khater said. “Especially as inflation threatens to place a strain on consumer budgets.”
People are showing renewed interest in the housing market as the latest figures show a resurgence in mortgage applications last week not seen since last April. (AP Photo/Michael Conroy, File) (Michael Conroy / AP Newsroom)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Additional data released this week shows the increase in rates has caused a decrease in people interested in filing mortgage applications. The average loan size also hit a new high, showing a continued trend of more would-be buyers being priced out of the market.
The Mortgage Banker’s Association’s weekly survey results released Wednesday showed that mortgage loan applications fell 5.4% from last week, but the average loan size hit a new record of $453,000.