Mortgage Rates Rise Swiftly

The average 30-year, fixed mortgage rate is rising swiftly, at 4.38 percent this week, according to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®). The average 30-year, fixed mortgage rate was 4.32 percent last week.

Concurrently, the average 15-year, fixed mortgage rate is 3.84 percent, up from 3.77 percent last week, while the five-year, Treasury-indexed hybrid adjustable mortgage rate is 3.63 percent, up from 3.57 percent last week.

“Wednesday’s Consumer Price Index report showed higher-than-expected inflation; headline consumer price inflation was 2.1 percent year-over-year in January—two-tenths of a percentage point higher than the consensus forecast,” says Len Kiefer, deputy chief economist at Freddie Mac. “Inflation measures were broad-based, cementing expectations that the Federal Reserve will go forward with monetary tightening later this year. Following this news, the 10-year Treasury reached its highest level since January 2014, climbing above 2.90 percent. Mortgage rates have also surged. After jumping 10 basis points last week, the 30-year fixed-rate mortgage rose six basis points to 4.38 percent—its highest level since April 2014.”

Source: Freddie Mac

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