Mortgage rates have taken a big leap at the start of the new year. In the first week of 2022, the 30-year fixed-rate mortgage jumped nearly 60 basis points higher than a year earlier, averaging 3.22% this week, Freddie Mac reports.
“Mortgage rates increased during the first week of 2022 to the highest level since May 2020 and are more than half a percent higher than January 2021,” says Sam Khater, Freddie Mac’s chief economist. “With higher inflation, promising economic growth, and a tight labor market, we expect rates will continue to rise. The impact of higher rates on purchase demand remains modest so far given the current first-time home buyer growth.”
The National Association of REALTORS® forecasts that mortgage rates will average 3.7% by the end of this year.
Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 6:
- 30-year fixed-rate mortgages: averaged 3.22%, with an average 0.7 point, increasing from last week’s 3.11% average. Last year at this time, 30-year rates averaged 2.65%.
- 15-year fixed-rate mortgages: averaged 2.43%, with an average 0.6 point, increasing from last week’s 2.33% average. A year ago, 15-year rates averaged 2.16%.
- 5-year hybrid adjustable-rate mortgages: averaged 2.41%, with an average 0.5 point, unchanged from last week. A year ago, 5-year ARMs averaged 2.75%.
Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.
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Ryan Christensen
Responsive, Responsible and Resourceful - How Real Estate Should Be. This is the foundation of our continued success: responsive service, providing accurate and timely information, and demystifying the process. 100% of my business is referral based because I listen to my clients' needs and exceed their expectations. As a full-time real estate broker, I am the best advocate for both my buyers and sellers. I am always available, regardless of the time of day.
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