After last week’s first rate drop of the year, mortgage rates showed little change this week—a welcome sign for the week’s kickoff to the spring home shopping season.
But home buyers and borrowers should expect several rate increases over the next few months, economists caution.
“The Federal Reserve raised interest rates [this week]—a much-anticipated move that comes as both U.S. and global economic fundamentals continue to strengthen,” says Len Kiefer, Freddie Mac’s deputy chief economist. “The Fed’s decision to raise interest rates by a quarter of a percentage point puts the federal funds rate at its highest level since 2008. The decision, while widely expected, sent the yield on the benchmark 10-year Treasury soaring.” (Read:
Fed Raises Rates: What This Means for Mortgages)
The 30-year fixed-rate mortgage rose 1 basis point this week and averaged 4.45 percent, according to Freddie Mac.
“So far, U.S. housing markets remain resilient in the face of higher mortgage rates,” Kiefer notes.
The National Association of REALTORS® reported earlier this week that existing-home sales in February increased 3 percent month over month on a seasonally adjusted basis and are up 1.1 percent from a year ago.
Freddie Mac reports the following national averages with mortgage rates for the week ending March 22:
- 30-year fixed-rate mortgages: averaged 4.45 percent, with an average 0.5 point, rising from last week’s 4.44 percent average. Last year at this time, 30-year rates averaged 4.23 percent.
- 15-year fixed-rate mortgages: averaged 3.91 percent, with an average 0.5 point, rising from last week’s 3.90 percent average. A year ago, 15-year rates averaged 3.44 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 3.68 percent, with an average 0.4 point, rising from last week’s 3.67 percent average. A year ago, 5-year ARMs averaged 3.24 percent.
Source: Freddie Mac
