Mortgage rates are on the rise in the new year, just like economists predicted. The 30-year fixed-rate mortgage, which is up 45 basis points in less than a month, averaged 3.56% this week compared to 3.11% in the last week of 2021.
“Mortgage rates moved up again as the 10-year U.S. Treasury yield rose and financial markets adjusted to anticipated changes in monetary policy that will combat inflation,” says Sam Khater, Freddie Mac’s chief economist. “As a result of higher mortgage rates, purchase demand has modestly waned in advance of the spring homebuying season. However, supply remains near historically tight levels and home prices remain high, keeping the market competitive.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 20:
- 30-year fixed-rate mortgages: averaged 3.56%, with an average 0.7 point increase from last week’s 3.45% average. Last year at this time, 30-year rates averaged 2.77%.
- 15-year fixed-rate mortgages: averaged 2.79%, with an average 0.6 point increase, up from last week’s 2.62% average. A year ago, 15-year rates averaged 2.21%.
- 5-year hybrid adjustable-rate mortgages: averaged 2.60%, with an average 0.3 point increase, rising from last week’s 2.57% average. A year ago, 5-year ARMs averaged 2.80%.
Freddie Mac reports national rates along with average points to better reflect the total upfront cost of obtaining a mortgage.