Mortgage Rates Soar Past 4%
Mortgage rates hit their highest level since May 2019, following a sharp increase in 10-year Treasury yield. According to Freddie Mac, the rate on the average 30-year fixed-rate mortgage jumped to 4.16 %, up from 3.85% a week ago. The 15-year fixed-rate — a common refinance option — also surged, averaging 3.39% from 3.09% last week. The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year. Home purchase demand remains competitive due to existing low inventory, suggesting high housing price pressures will continue throughout 2022.