Mortgage rates soar to their highest levels in 11 years
For the first time in more than a decade, the 30-year fixed mortgage rate hit 5%.
According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average climbed to 5% with an average 0.8 point. (A point is a fee paid to a lender equal to 1% of the loan amount. It is in addition to the interest rate.) It was 4.72% a week ago and 3.04% a year ago. The last time the 30-year fixed average was above 5% was February 2011.
Freddie Mac, the federally chartered mortgage investor, aggregates rates from around 80 lenders across the country to come up with weekly national averages. The survey is based on home purchase mortgages. Rates for refinances may be different. It uses rates for high-quality borrowers with strong credit scores and large down payments. Because of the criteria, these rates are not available to every borrower.
The 15-year fixed-rate average jumped to 4.17% with an average 0.9 point. It was 3.91% a week ago and 2.35% a year ago. The five-year adjustable rate average rose to 3.69% with an average 0.3 point. It was 3.56% a week ago and 2.8% a year ago.
"The Freddie Mac fixed rate for a 30-year loan maintained its momentum this week, as markets reacted to the latest data on consumer prices, which accelerated in March to a pace not seen since 1981," George Ratiu, manager of economic research at Realtor.com, said. "After approaching 2.8% early this week, the 10-year Treasury retreated slightly, as investors equated the slight moderation in the core consumer price index with a signal that we've hit peak inflation. However, hopes of a cooling may be premature, given the jump in producer prices, which advanced at the fastest pace on record."
Mortgage rates are being driven higher by rising inflation. The consumer price index, released Tuesday by the Bureau of Labor Statistics, showed prices...