Mortgage rates are on the rise again

According to Freddie Mac, 30-year fixed-rate mortgages averaged 5.23% for the week to June 9, up from 5.09% last week. It’s well above the average of 2.96% since this time last year.

“There has been little activity in the last few weeks, but mortgage rates have risen again on the back of rising economic activity and the influx of inflation data,” said Sam Carter, chief economist at Freddie Mac.

George Ratiu, senior economist and economic research manager at Realtor.com, said interest rates rose in anticipation of inflation data on Friday, reflecting the rebound of 10-year government bonds, which reached 3% in the middle of the week. ..

“Investors are looking at the consumer price index and expect a continued rise, but at a gradual pace,” he said, with data being a key indicator of the Federal Reserve Board next week. I added that it would be.

Fed Raise the rate Again at the next policy-making meeting. Mortgage rates tend to track 10-year US Treasuries. However, interest rates are indirectly affected by the Fed’s actions on inflation. When investors see or anticipate rate hikes, they often sell government bonds. It sends higher yields, along with mortgage rates.

The housing market is Highest home prices ever And higher mortgage rates. According to Joel Kang, vice president of economics and industry forecasting for the Mortgage Banking Association, mortgage applications have declined, both buying and refinancing applications have weakened, and the market index has reached its lowest level in 22 years. lowered.

Median homebuyers are considering paying a monthly mortgage, 53% higher than they were a year ago, adding $ 670 to their monthly costs.

Further exacerbating these pressures, Ratiu said, nearly 20 states are above average gasoline prices. $ 5 per gallon, Employers, in particular, are asking workers to return to the office, pushing living costs to new highs.

“The economic outlook depends heavily on the well-being of US consumers,” Latiu said. “For many Americans looking for affordable homes, medium-sized cities are still a viable option, especially as the number of homes for sale is increasing and offering fresh options. “