After a slight drop last week, mortgage rates are back on the rise.
The benchmark 30-year fixed-rate mortgage climbed to 4.58 percent from 4.54 percent, according to Bankrate’s weekly survey of large lenders.
Homebuyers who want to get ahead of more rate increases should consider locking in a rate now. Mortgage rates have increased nine out the past 10 weeks, and most experts predict that they will continue moving higher.
The Fed hike and mortgage rates
The Federal Reserve on Wednesday voted to raise its benchmark interest rate to the highest level in a decade. Chairman Jerome Powell cited impressive job gains and a low unemployment rate as signs that the economy is ready to move forward with planned rate hikes.
As the Federal Reserve continues raising the federal funds rate, mortgage rates are expected to rise as well (though not necessarily in lock-step). And with entry-level homebuilding lagging, some homebuyers might be “compelled to move more quickly sooner,” says Mark Hamrick, senior economic analyst at Bankrate.com.
“Between rising home prices and surging interest rates, affordability is a more pressing issue for would-be homebuyers,” Hamrick says.
Mortgage rates this week
The benchmark 30-year fixed-rate mortgage rose this week to 4.58 percent from 4.54 percent, according to Bankrate’s weekly survey of large lenders. A year ago, it was 4.29 percent. Four weeks ago, the rate was 4.52 percent. The 30-year fixed-rate average for this week is 0.01 percentage points below the 52-week high of 4.59 percent, and is 0.63 percentage points above the 52-week low of 3.95 percent.
The 30-year fixed mortgages in this week’s survey had an average total of 0.34 discount and origination points.
Over the past 52 weeks, the 30-year fixed has averaged 4.17 percent. This week’s rate is 0.41 percentage points higher than the 52-week average.
- The 15-year fixed-rate mortgage rose to 4.00 percent from 3.95 percent.
- The 5/1 adjustable-rate mortgage rose to 4.05 percent from 4.04 percent.
- The 30-year fixed-rate jumbo mortgage rose to 4.55 percent from 4.51 percent.
At the current 30-year fixed rate, you’ll pay $511.45 each month for every $100,000 you borrow, up from $509.06 last week.
At the current 15-year fixed rate, you’ll pay $739.69 each month for every $100,000 you borrow, up from $737.18 last week.
At the current 5/1 ARM rate, you’ll pay $480.30 each month for every $100,000 you borrow, up from $479.72 last week.
Results of Bankrate.com’s weekly national survey of large lenders conducted March 21, 2018, and the effect on monthly payments for a $165,000 loan:
|Breakdown||30-year fixed||15-year fixed||5-year ARM|
|This week’s rate:||4.58%||4.00%||4.05%|
|Change from last week:||+0.04||+0.05||+0.01|
|Change from last week:||+$3.93||+$4.14||+$0.96|