Mortgage Rates Cross 3% Threshold – RISMedia |

Mortgage rates broke the 3% threshold for the 30-year Fixed Rate Mortgage (FRM), scoring 3.01% for the week ending September 30.

According to the Freddie Mac® Primary Mortgage Market Survey, this is up from 2.88% last week.

Mortgage Details:

– The 30-year fixed rate mortgage averaged 3.01% with an average of 0.7 points for the week ending September 30, 2021, compared to 2.88% last week. Last year, the 30-year FRM averaged 2.88%.

– The 15-year fixed-rate mortgage averaged 2.28% with an average of 0.6 points, compared to 2.15% last week. Last year, the 15-year FRM averaged 2.36%.

– The 5-year Treasury-indexed hybrid variable-rate mortgage (ARM) averaged 2.48% with an average of 0.3 points, compared to 2.43% last week. Last year, the 5-year MRA averaged 2.90%.

Takeaway meals:

This marks the end of a seven week streak of stagnation or slight change. The biggest week-over-week increase since February, the 30-year loan rose 13 basis points – the first time since June that mortgage interest rates reported by Freddie Mac have hit more than 3%.

“Mortgage rates rose on all types of loans this week as the 10-year US Treasury yield hit its highest level since June,” Sam Khater, chief economist at Freddie Mac, said in a statement. “Many factors have led to this increase, including the Federal Reserve communicating that it would reduce its support for capital markets, widening inflation and emerging energy supply shortages which are exacerbating other labor shortages. of work and materials. “

Khater continued, “We expect mortgage rates to continue rising slightly, which will likely impact home prices, causing them to slow slightly after rising over the past year.”

“The 10-year Treasury yield also broke its sideways trend going back to mid-August and has passed 1.5% for the first time since late June. These increases were driven by the recognition that the economy is doing well and that growth is likely to continue, ”Danielle Hale, chief economist of realtor.com®, said in a statement. This sentiment was reinforced by the Fed’s statement last week that the economy had made enough progress towards economic targets that the reduction in asset purchases would soon be warranted. While uncertainty over a variety of legislative priorities – from infrastructure plans to the limit of debt – increases the potential for surprises and rate volatility, the likely trend in the near term is for rates to rise. “

“Early fall is typically the best time of year for home buyers to buy a home, and with September housing stock peaking in 2021, this season delivers on that typical promise. Home buyers will want to think about the rate hike when budgeting. Savvy buyers should consider calculating a monthly payment not only at today’s rates, but also slightly higher rates so that they don’t get derailed by a sudden upward movement, ”Hale said. “Plus, home buyers want to carefully consider their must-haves versus credit vouchers, as rising home prices and higher rates mean higher monthly payments. At today’s rate, the monthly mortgage payment on a median priced home is about $ 150 higher than a year ago, with $ 25 of the increase due to higher rates and $ 125 due to higher prices.

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