Rate rises by more than 30 basis points
The average 30-year fixed-rate mortgage (FRM) has hit 3.02% after falling throughout most of 2020, according to Freddie Mac’s Primary Mortgage Market Survey. This is the first time the 30-year FRM has surpassed 3% since July and the fifth straight week it has climbed or remained stable.
Freddie Mac chief economist Sam Khater also noted that the home loan has risen by more than 30 basis points since reaching a low point in January, “and the impact on purchase demand has been noticeable.”
“While purchase activity remains high, it has cooled off over the last few weeks and is currently on par with early March, prior to the pandemic,” he said.
The 15-year fixed-rate mortgage held steady at 2.34%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage declined from 2.99% to 2.73% week over week.
Khater expects the increase in mortgage rates over the coming months to be more muted compared to the past few weeks. Despite the rising rates, Khater forecasted a strong spring sales season due to the Fed’s decision to keep interest rates low until the economy recovers.
