Borrowing costs are climbing: The 30-year fixed-rate mortgage rose to a 3.92% average last week, Freddie Mac reports.
“Mortgage rates jumped again due to high inflation and stronger than expected consumer spending,” says Sam Khater, Freddie Mac’s chief economist. “The 30-year fixed-rate mortgage is nearing four percent, reaching highs we have not seen since May 2019. As rates and house prices rise, affordability has become a substantial hurdle for potential home buyers, especially as inflation threatens to place a strain on consumer budgets.”
As of now, however, the rising rates are sparking an urgency rather than a pause among house hunters, Nadia Evangelou, National Association of REALTORS®’ senior economist and director of forecasting, writes on the association’s blog. “Buyers are rushing to lock in lower rates as the outlook is for even higher mortgage rates in the following months,” she notes. Mortgage rates are still low by historical standards.
Freddie Mac reports the following national averages for mortgage rates for the week ending Feb. 17:
- 30-year fixed-rate mortgages: averaged 3.92, with an average 0.8 point, rising from last week’s 3.69% average. Last year at this time, 30-year rates averaged 2.81%.
- 15-year fixed-rate mortgages: averaged 3.15%, with an average 0.8 point, increasing from last week’s 2.93% average. A year ago, 15-year rates averaged 2.21%.
- 5-year hybrid adjustable-rate mortgages: averaged 2.98%, with an average 0.3 point, increasing from last week’s 2.80% average. A year ago, 5-year ARMs averaged 2.77%.
Freddie Mac reports average commitment rates along with points to better reflect the total upfront cost of obtaining a mortgage.