Mortgage rates are expected to continue rising, the New York Times reported on Thursday, with mortgage interest rates exceeding 4% for the first time in nearly three years.
According to Freddie Mac, a national mortgage agency, the interest on a 30-year fixed-rate mortgage exceeded 4% for the first time since May 2019, and recorded a weekly average of 4.16% until the 17th. This is a significant increase from 3.85% a week ago and 3.09% a year ago.
The Federal Reserve raised interest rates by 0.25 percentage points on the 16th for the first time since 2018 and hinted at plans to raise it six more times.
“The signs that the Fed is raising short-term rates and raising further rates mean that mortgage rates are rising year-round,” Sam Carter, chief economist at Freddie Mac, said in a statement. “This suggests that competition is fierce and that upward pressure on prices will continue during the spring home buying season,” he said.
The average interest rate on the 30-year fixed mortgage, the most popular home loan, hit a record low of 2.65% in January 2021.