Almost one year after mortgage rates hit an all-time low, mortgage rates spiked the past few weeks, according to data compiled by Credible. This time last year, mortgage rates were at 2.65% for a 30-year home loan. However, in recent weeks, that number has ballooned to 3.750 percent.
Freddie Mac’s Chief Economist Sam Khater said in a statement: “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 homebuyer growth.”
For January 11, based on data compiled by Credible, mortgage rates have risen across all terms since yesterday.
● 30-year fixed mortgage rates: 3.750%, up from 3.625%, +0.125
● 20-year fixed mortgage rates: 3.750%, up from 3.250%, +0.500
● 15-year fixed mortgage rates: 3.000%, up from 2.625%, +0.375
● 10-year fixed mortgage rates: 3.000%, up from 2.500%, +0.500
Rates last updated on Jan. 11, 2022. These rates are based on the assumptions shown here. Actual rates may vary.
With longer terms sitting well over 3.500%, homebuyers who can manage a higher monthly payment stand to save the most on interest with a shorter-term mortgage. With further increases expected throughout 2022, locking in a rate today could allow buyers to avoid even bigger spikes. Bond market supply has been elevated over the past two weeks, and higher supply means higher rates.
I understand your real estate needs are constantly evolving, so if you're looking to buy or sell before mortgage rates continue rising, call, text, or email me to chat about how we can help you find the perfect home.