For the week ending February 17, the average 30-year fixed-rate mortgage rose 23 basis points to 3.92%, up from 3.91% the previous week. According to the most recent Freddie Mac PMMS Mortgage Survey, this is the highest level of mortgage rate since May 2019, even though the 30-year fixed-rate mortgage averaged 2.81% a year ago. The PMMS study focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with great credit and a 20% down payment. According to a statement by Sam Khater, Freddie Mac’s Chief Economist, mortgage rates have risen once more due to high inflation and stronger-than-expected consumer expenditure.
Mortgage rates are normally linked to the 10-year Treasury yield, which hit 2.03% on February 16, up from 1.94% the week before. In the preceding week, the 15-year fixed-rate mortgage averaged 3.15%, up from 2.93% the week before that. It was 2.21% a year ago at this time. Economists projected that rates would rise in 2022 as the economy steadied but would remain near record lows. Rates, on the other hand, increased faster than planned. According to the Mortgage Bankers Association (MBA), 30-year mortgage rates will hit 4% by the end of 2022.
According to Joel Kan, MBA’s assistant vice president of economic and industry forecasts, mortgage rates will almost probably rise if current conditions continue. However, rates may quickly reverse if something else rocks the boat, such as an armed war between Russia and Ukraine, an emerging COVID version, or a dramatic change in commodity prices.
To read more about the rising mortgage rates and their impacts, click here.
https://www.housingwire.com/articles/mortgage-rates-jump-to-3-92-amid-high-inflation/
About Note Servicing Center
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid.
Contact us today for more information.
Share This Story, Choose Your Platform!
Related Posts
Disclaimer
The information provided in this article is for general educational and informational purposes only and does not constitute legal, financial, investment, tax, or professional advice. Note Servicing Center, Inc. is a licensed loan servicer and does not provide legal counsel, investment recommendations, or financial planning services. Reading this content does not create an attorney-client, fiduciary, or advisory relationship of any kind.
Nothing in this article constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any security, promissory note, mortgage note, fractional interest, or other investment product. Any references to notes, yields, returns, or investment structures are illustrative and educational only. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal.
Note investing, real estate transactions, and lending activities are subject to federal, state, and local laws that vary by jurisdiction and change over time. Before making any decision based on the information in this article, you should consult with a qualified attorney, licensed financial advisor, certified public accountant, or other appropriate professional who can evaluate your specific circumstances.
While we make reasonable efforts to ensure the accuracy of the information presented, Note Servicing Center, Inc. makes no warranties or representations regarding the completeness, accuracy, or current applicability of any content. We disclaim all liability for actions taken or not taken in reliance on this article.