The 30-year fixed-rate mortgage averaged 5.11% this week, continuing its rapid rise, Freddie Mac reports. The higher borrowing costs are forcing home buyers to expand their budgets.
With higher rates and home prices, house hunters need to earn about $25,000 extra if they want to buy the typical home now compared to a year earlier, Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS®, writes for the association’s blog. Existing-home sales are dropping as a result.
Rising Treasury yields are putting pressure on mortgage rates, says Sam Khater, Freddie Mac’s chief economist. “While springtime is typically the busiest homebuying season, the upswing in rates has caused some volatility in demand,” Khater says. “It continues to be a seller’s market, but buyers who remain interested in purchasing a home may find that competition has moderately softened.”
Freddie Mac reports the following national averages with mortgage rates for the week ending April 21:
- 30-year fixed-rate mortgages: averaged 5.11%, with an average 0.8 points, rising from last week’s 5%. Last year at this time, 30-year rates averaged 2.97%.
- 15-year fixed-rate mortgages: averaged 4.38%, with an average 0.8 points, increasing from last week’s 4.17% average. A year ago, 15-year rates averaged 2.29%.
- 5-year hybrid adjustable-rate mortgages: averaged 3.75%, with an average 0.3 points, increasing from last week’s 3.69% average. A year ago, 5-year ARMs averaged 2.83%.
Freddie Mac reports commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.