If you’ve been shopping around for a mortgage, you may be shocked at how much worse the offers are getting, and how quickly.
The average rate offered for a 30-year fixed mortgage vaulted to 5.87% from 5.41% overnight, according to lender data provided to The Balance.
The jump of nearly half a percentage point was only the latest (though largest) in a recent string, putting the average at its highest since at least 2019 and a far cry from its low of 2.89% in December 2020. As the chart below shows, it’s risen more than an entire percentage point in a little over two weeks. (Our daily mortgage rate data only goes back to April 2021, but our data on yearly highs and lows date back to 2020, so we know rates hadn’t been higher in 2020.)
Freddie Mac’s weekly measure of mortgage rates showed a similar spiking trend. The mortgage giant said Thursday that the increase over the last three months is the fastest for any three-month period since 1994. Mortgage rates tend to move with yields on 10-year Treasuries, and those have risen significantly as the Federal Reserve has waged a campaign of battling inflation by raising its benchmark interest rate.
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