Latest News

Mortgage Rates in U.S. Soar to the Highest Since March 2020

(Bloomberg) — Mortgage rates in the U.S. rose for a third straight week, reaching the highest point in almost two years.

Most Read from Bloomberg

Cannabis Compounds Prevented Covid Infection in Laboratory Study

Frequent Boosters Spur Warning on Immune Response

Supreme Court Blocks Biden’s Shot-or-Test Rule for Workers

Say Goodbye to Self-Isolating, WFH Mandates, Mass Testing

Should I Be Wearing an N95 or KN95? Understanding the Evolving Advice on Masks

The average for a 30-year loan was 3.45%, up from 3.22% last week and the highest since March 2020, Freddie Mac said in a statement Thursday.

Rates tracked a jump in yields for 10-year Treasuries, which climbed to levels not seen since early 2020, before the pandemic roiled financial markets. Signs point to borrowing costs rising further as the job market improves and the Federal Reserve steps up its efforts to tame inflation.

That would increase the burden on homebuyers who are already stretching to afford a purchase. Rates for 30-year mortgages tumbled to a record low a little more than a year ago. Cheap loans have helped fuel a housing rally that’s still running hot even as home prices soar out of reach for many Americans.

“The rise in mortgage rates so far this year has not yet affected purchase demand,” Sam Khater, Freddie Mac’s chief economist, said in the statement. “But given the fast pace of home price growth, it will likely dampen demand in the near future.”

There are some indications that inflation may be easing, with an index measuring prices paid to U.S. producers coming in lower than expected.

“If inflation cools off, interest rates will level,” said Keith Gumbinger, vice president at mortgage-information company

At the current average rate monthly payment, the monthly payment on a $300,000 mortgage would be $1,339. That’s up from $1,209 at the record low of 2.65%, reached in January 2021.

(Updates with Gumbinger comment and monthly payment in last three paragraphs.)

Most Read from Bloomberg Businessweek

For Macron and France, It’s the Economy, Stupide

Central Banks, Not Covid, Will Drive Global Economies in 2022

America’s Electric Vehicle Selection Is About to Get a Lot Wider

China Faces Mounting Economic Damage From Its Covid-Zero Policy

How Democrats Could Hold On to the House and Defy the Pundits

©2022 Bloomberg L.P.

You may also like

Leave a reply

Your email address will not be published.

More in Latest News