{"id":13179,"date":"2022-05-13T01:14:03","date_gmt":"2022-05-13T01:14:03","guid":{"rendered":"https:\/\/harchi90.com\/mortgage-rates-continue-to-climb\/"},"modified":"2022-05-13T01:14:03","modified_gmt":"2022-05-13T01:14:03","slug":"mortgage-rates-continue-to-climb","status":"publish","type":"post","link":"https:\/\/harchi90.com\/mortgage-rates-continue-to-climb\/","title":{"rendered":"Mortgage rates continue to climb"},"content":{"rendered":"

The 30-year, fixed-rate mortgage averaged 5.30% in the week ending May 12, up from 5.27% the week before, according to Freddie Mac. It is the highest since 2009 and well above the 2.94% average from this time last year .<\/p>\n

As mortgage rates rise and the cost of buying a home increases, some buyers are expected to drop out of the market. That, in turn, is likely to reduce competition in some markets, slowing the pace of home price growth.<\/p>\n

But an increase in mortgage applications last week showed buyers remain undeterred – despite rising mortgage rates, according to the Mortgage Bankers Association.<\/p>\n

“Homebuyers continue to show resilience even though rising mortgage rates are causing monthly payments to increase by about one-third as compared to a year ago,” said Sam Khater, Freddie Mac’s chief economist. <\/p>\n

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Several factors are contributing to this continued demand, he said, including the large wave of first-time homebuyers looking to buy. Plus, the spring is typically the peak buying season.<\/p>\n

“In the months ahead, we expect monetary policy and inflation to discourage many consumers, weakening purchase demand and decelerating home price growth,” said Khater.<\/p>\n

Last week the Federal Reserve bank announced it would raise the federal funds rate by half a percentage point, the biggest jump since 2000, in a bid to curb inflation. Mortgage rates tend to track 10-Year US Treasury bonds. But rates are also indirectly impacted by the Fed’s actions on inflation.<\/div>\n
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