Interest rates on 30-year mortgages hit 5%
WASHINGTON — Long-term U.S. mortgage rates continued to climb this week, with the key 30-year lending rate hitting 5% for the first time in more than a decade amid persistently high inflation.
What do you want to know
- Mortgage rates on 30-year loans soared to 5% this week
- This was up 0.28% from the previous week
- It was the first time in over 10 years that they were this high
- Average 15-year fixed-rate mortgage rate climbed to 4.17%
The average rate of 5% on the 30-year mortgage was up from 4.72% last week, mortgage buyer Freddie Mac reported Thursday. Average rates in recent months have shown the fastest rate of increase since 1994. In contrast, a year ago, the 30-year rate was 3.04%.
The average rate on 15-year fixed-rate mortgages, popular among those refinancing their homes, jumped to 4.17% from 3.91% last week.
With inflation at its highest level in four decades, rising mortgage rates, high house prices and a tight supply of homes available for sale, home ownership has become the most expensive goal in a generation, says Freddie Mac. And that comes at the start of the spring home buying season.
House prices have risen about 15% over the past year and up to 30% in some cities. Available homes were scarce even before the coronavirus pandemic began just over two years ago.
A government report released on Wednesday showed soaring energy prices pushed wholesale prices up 11.2% last month from a year earlier – another sign that inflationary pressure is widespread across the country. the American economy. Energy prices, which soared around the world after Russia’s February 24 invasion of Ukraine, rose 36.7% from March 2021. The headline inflation report has was released a day after the Department of Labor revealed that consumer prices in March jumped 8.5% from a year earlier, the fastest annual clip since December 1981.