Tag Archives: interest rates

30-year mortgage rate back over 5%

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Average long-term U.S. mortgage rates soared this week in acontinued volatile market as the key 30-year loan rate jumped back over 5%.

Mortgage buyer Freddie Mac reports that the 30-year rate rose to 5.22% from 4.99% last week. By contrast, the rate stood at 2.87% a year ago.

The average rate on 15-year, fixed-rate mortgages, popular among those looking to refinance their homes, increased to 4.59% from 4.26%.

Last week the 30-year rate fell below 5% for the first time in four months, days after the Federal Reserve raised its benchmark interest rate by three-quarters of a point in its most aggressive drive in over three decades to tame record-high inflation.

The Party is Over – Refi Applications Plunge to Two-Year Low as Rates Surge

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Even for a week containing a holiday, last week was a bad one. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, fell 7.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 6 percent compared to the previous week. The week ended January 21 started with the observance of Martin Luther King’s birthday although MBA did not indicate it adjusted its data to account for it.

The Refinance Index decreased 13 percent from the previous week and was 53 percent lower than the same week one year ago. The refinance share of mortgage activity declined to 55.8 percent of total applications from 60.3 percent the previous week, the lowest for refinancing since Christmas week 2019.

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