Interest rates increased for 30-year fixed rate mortgages to 3.12% of the annual percentage rate (APR) for the week ending Dec. 16, according to Freddie Mac’s Prime Mortgage Market Survey. This is up from 3.1% Last week, and 2.67% last year, showed the survey of the primary mortgage market.
“Mortgage rates have increased slightly due to the economic improvement and a change in the direction of monetary policy,” said Sam Khater, chief economist at Freddie Mac. “As house price growth slows, prices remain high due to strong demand for housing and low supply. We expect rates to continue to rise until 2022, which could leave less space in their budget for some potential buyers. “
If you want to take advantage of current mortgage rates before they increase further in 2022, consider mortgage refinancing to save on your monthly payments and the life of the loan. Visit Credible to find your personalized interest rate without affecting your credit score.
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Interest rates will rise in the coming weeks
While interest rates have increased for 30-year mortgages, movements for other types of loans have varied. Rates on 15-year mortgages fell to 2.34%, from 2.38% last week and up from the average rate of 2.21% last year. The five-year Treasury-indexed variable-rate hybrid mortgage was unchanged from last week at 2.45%. This is down from 2.79% last year.
Despite these modest changes in mortgage refinancing rates, which hover near historic lows, economists expect rates to rise in the coming weeks.
“Following the Fed’s announcement to accelerate the cut in its bond buying program and FOMC members’ projections that three Fed fund rate hikes will be appropriate policy in 2022, Freddie fixed rate Mac for a 30-year loan was moved only slightly higher, registering 3.12% this week, “said Danielle Hale, chief economist at Realtor.com.” Concerns about the potential impact of the omicron variant – for which expectations are changing rapidly – more than offset stronger economic data, including increased confidence among builders and small businesses.
“Confirming the optimistic outlook for manufacturers, construction data for November exceeded expectations, ”Hale said. “However, coupled with the Fed’s announcement, we expect this stronger economic data to lead to a larger hike in mortgage rates in the coming weeks, unless new information suggests that omicron is a greater concern. . “
You can take advantage of lower interest rates with mortgage refinancing, which could lower your monthly payments. Visit Credible to compare multiple mortgage lenders at once and choose the one that offers you the best interest rates and loan terms.
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Rising interest rates and high home prices are not deterring homebuyers
Experts say that despite rising house prices and interest rates, borrowers are impatient to buy a home and are even increasing their budgets.
“The housing market remains competitive with our data showing asking prices have jumped this week,” Hale said. “With rents also on the rise, up 19.7% over the past year, the rental market offers no relief from high housing costs. Faced with these realities, first-time home buyers are more determined than ever.
“Our recent survey data shows that aspiring first-time buyers are increasing their real estate budgets and are more willing to bid above the asking price to be successful in today’s housing market,” she said. declared.
If you are interested in buying a new home or refinancing your current mortgage as rates today continue to be near historic levels, contact Credible to speak to a mortgage expert and get all your questions answered.
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