Home News 30-year mortgage rates rise, remain at highest level in more than a decade

30-year mortgage rates rise, remain at highest level in more than a decade

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Mortgage rates have risen this week, maintaining their highests since 2009, and economists predict a recession is imminent. ((((iStock).

30-year fixed-rate mortgages rose again this week, maintaining their highest levels since 2009. Federal Reserve According to, it keeps increasing the rate New data From Freddie Mac.

According to Freddie Mac’s Primary Mortgage Market Research, interest rates for this longer mortgage period rose to a 5.3% annual rate (APR) in the week leading up to May 12. This is 5.27% last week, up from 2.94% last year.

However, not all mortgage rates have risen. For example, mortgages in 2015 fell to 4.48%, down from 4.52% last week, but still significantly up from 2.26% last year. However, the five-year Treasury indexed hybrid floating rate mortgage (ARM) increased from 3.96% last week and 2.59% last year to 3.98%.

As the Federal Reserve plans to raise rates further over the next year, it is unlikely that these increases will soon subside. If you are interested in reducing your monthly mortgage payments, you can consider refinancing. Online marketplaces like Credible allow you to compare multiple mortgage lenders at once without affecting your credit score.

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Fed continues to raise rates as economists warn of recession

Federal Reserve System Interest rate hike It rose 50 basis points at the May meeting, achieving its second rate hike this year. Highest increase in 20 years.. We also raised interest rates by 25 basis points. The March meeting.. However, as inflation continues to rise, more rate hikes may occur in 2022 and 2023.

“Mortgage rates continued to rise as the Federal Reserve raised target rates,” said Joel Berner, senior economic analyst at Realter.com. “The Fed’s governor (and President Biden) is aiming to curb inflation, but the consumer price index is still high, up 8.3% from the previous year’s level.

“The stock market is paying attention to these tough indicators, and key indices have continued to fall for a week,” Berner said. “Dirty words are on the lips of American economists and financiers:” recession. ” ”

More economists are beginning to predict that a recession may be imminent.among them Latest forecastFannie Mae predicted that GDP would increase by 7.4% in 2022, but a recession could be seen in 2023 with a 9.7% decrease.

If mortgage owners are interested in taking advantage of current mortgage rates before they rise further, refinancing mortgages can help them get lower interest rates and save on monthly payments. there is. Visit Credible to find personalized interest rates Without affecting your credit score.

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There are a lot of challenges for future homebuyers

As mortgage rates and home prices rise, the home market is becoming more difficult and expensive for potential home buyers.

Freddie Mac Chief Economist Sam Carter said, “Even though rising mortgage rates have increased monthly payments by about one-third compared to a year ago, homebuyers continue to be. It shows resilience. ” “Several factors have contributed to this dynamic, including the wave of first-time homebuyers trying to realize their homeownership dreams. In the coming months, monetary policy and inflation will discourage many consumers. , We expect to weaken purchase demand and slow the rise in home prices. “

According to another economist, a shortage of homes has helped push prices up and make it more expensive for borrowers to buy homes. And it’s unlikely that mortgage rates will drop soon. However, the affordable challenge is that some buyers may be priced from the market and begin to slow the rise in home prices in the coming months.

“The challenges for future homebuyers continue to grow,” Berner said. “Listing prices are at record highs and homes are at historically low levels. Rising living costs and lower investment values ​​make it harder to save upfronts, and higher mortgage rates make home borrowing more difficult. It will be more expensive.

“As regulators focus on controlling inflation, mortgage rates are unlikely to fall significantly in the near future,” he said. “Some buyers have been priced from the housing market ahead of the busy summer season, removing pressure from listing prices rising at historic rates. Early in this price slowdown. Signs can be seen in the percentage of listings. There have been year-on-year increases in prices in each of the last two months. “

If you are looking to buy a home in the midst of rising prices and interest rates today, comparing multiple lenders will help you find the best mortgage rate for your loan amount. I can.You can also Contact Credible to talk to a mortgage expert Then ask them to answer all your questions.

I have a financial question, but don’t know who to ask? Send an email to a trusted money expert at [email protected] And your question may be answered by Credible in our Money Expert column.

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