WASHINGTON–Mortgage rates have risen again, hitting a level not seen since before the pandemic.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 3.69% in the week ending Feb. 10, up from 3.55% the week before. It's the highest since January 2020.
"The normalization of the economy continues as mortgage rates jumped to the highest level since the emergence of the pandemic," said Sam Khater, Freddie Mac's chief economist, in a statement. "Rate increases are expected to continue due to a strong labor market and high inflation, which likely will have an adverse impact on homebuyer demand."
As CUToday.info reported separately, the mortgage rate increase comes at the same time there has been a surge in the 10-year Treasury, which passed 1.9% this week, the highest point since November 2019.
"The stronger-than-expected employment report for January, and rising inflation, which accelerated further in January, are keeping investors bullish on the economy," George Ratiu, Realtor.com's manager of economic research, told CNN.
People Paying More
But as rates have risen, he said, mortgage applications to purchase a home have declined in the last week, as many first-time buyers were priced out of the market.
Ratiu told CNN the housing market is caught in a “lopsided dynamic” with buyers eager to find a home before rates rise even higher. But the number of homes available to buy is at a record low and home prices are still rising at more than 10% over last year, he pointed out.
At the current rate, Ratiu said, homebuyers are paying $270 more on their monthly mortgage payment compared with one year ago.
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