WASHINGTON– Mortgages rates hit their highest level in more than a decade last week. This increase follows the continued surge in the 10-year Treasury, which crossed the 2.8% mark for the first time since December 2018.'
The 30-year fixed-rate mortgage averaged 5.11% in the week ending April 21, up from 5% the week before, according to Freddie Mac. The increase marked the seventh consecutive week of increases and is considerably higher than the 2.97% average for the same period one year earlier.
The last time rates reached this level was in April 2010 when they hit 5.21%, according to Freddie Mac.
"With the cost of financing a home about 40% higher than a year ago, demand for homes is visibly cooling, as many first-time buyers find themselves unable to qualify for a mortgage on a home that meets their needs," said an economist with Realtor.com.
With members of the Federal Reserve signaling they will continue to push rates higher, it is also expected that mortgages will, in turn, follow suit.