Mortgage rates surge to levels not seen since the early days of the pandemic

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

Mortgage rates surge to levels not seen since the early days of the pandemic

Mortgage rates have come out soaring in just the second week of the year, reaching levels not seen since March of 2020, a closely watched survey shows.

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

Other new research shows the higher borrowing costs — which most experts say will only continue heading north as the economy improves — are prompting borrowers to lock in today's mortgage rates that are still low by historical standards.

30-year fixed mortgage rates

The average interest rate on a 30-year fixed-rate mortgage spiked to 3.45% last week, up from 3.22% the week earlier, mortgage giant Freddie Mac is reporting. Rates are the highest since the week of March 26, 2020, according to Freddie Mac's data.

Global Tech News Daily

One year ago, the 30-year rate was averaging 2.79%, just above the all-time low of 2.65%, which hit during the first week of January 2021.

But a lot has changed since then — namely inflation, and the Federal Reserve’s plans for combating it.

Global Tech News Daily

The government reported last week that inflation in 2021 shot up 7% — a 40-year high — amid a surge in demand for consumer products and an ongoing supply chain backlog.

“Mortgage rates rose across all mortgage loan types, with the 30-year fixed-rate mortgage increasing by almost a quarter of a percent” from the previous week's average of 3.22%, says Sam Khater, Freddie Mac’s chief economist.

“This was driven by the prospect of a faster than expected tightening of monetary policy in response to continued inflation exacerbated by uncertainty in labor and supply chains,” Khater says.

15-year fixed-rate mortgages

The rate on a 15-year fixed-rate mortgage averaged 2.62% last week, up from 2.43% a week earlier, Freddie Mac says.

One year ago, the shorter-term loans were averaging 2.23%.

Note that the Freddie Mac numbers are simply averages, meaning higher — and even lower — rates are out there. Some lenders are still advertising 15-year refi loans at 2% and 30-year refis for under 3%.

If you’re a homeowner willing to take on a higher monthly payment, you could slash your lifetime interest charges by trading in a 30-year mortgage for a 15-year.

5-year adjustable-rate mortgages

The rate on a five-year adjustable-rate mortgage (ARM) averaged 2.57% last week, up from 2.41% the previous week.

Last year at this time, five-year ARMs were averaging 3.12%.

ARMs typically start out with lower rates than fixed-rate loans. But after a period of time, an ARM starts to adjust — that is, the rate moves up or down in sync with the prime rate or another benchmark.

If you financed your home with a popular 5/1 ARM — which offers a steady rate for five years before the adjustments start — you might want to consider refinancing into a more stable fixed-rate mortgage now that borrowing costs are pushing higher.

More from MoneyWise

    How borrowers are responding to rising rates

    Homebuyers seem to have gotten the message that rates aren’t likely to fall back down. Applications for homebuyer “purchase” loans are up, according to the latest report from the Mortgage Bankers Association.

    “Buyers are pouring into the market to claim a home before mortgage rates rise further as new listings slow to a trickle,” says Daryl Fairweather, chief economist at the real estate brokerage Redfin.

    At today’s 30-year mortgage rates, buyers of a median-priced home already are paying some $219 more per month than they were a year ago, says George Ratiu, manager of economic research for Realtor.com. That’s over $2,600 annually.

    “Real estate markets are unseasonably active this January, as many buyers respond to the signals of rising rates and prices by seeking to find the right home and lock in a fixed-rate mortgage payment,” Ratiu says.

    Meanwhile, refinance loan applications from homeowners are at their lowest point since January 2020.

    “Rates at these levels are quickly closing the door on refinance opportunities for many borrowers,” says Joel Kan, the lead economic and industry forecaster for the Mortgage Bankers Association.

    What’s driving the higher rates?

    With inflation at levels not seen in decades, the Federal Reserve has been on the hot seat to temper some of the demand that’s led to higher prices on cars, appliances and other consumer goods.

    To help put a lid on runaway costs, the central bank recently indicated it would raise interest rates several times this year and stop its pandemic buying of bonds and mortgage-backed securities.

    “If we see inflation persisting at high levels longer than expected, if we have to raise interest rates more over time, we will,” Fed Chair Jerome Powell said last week at his second-term nomination hearing in front of the Senate Banking Committee.

    Even with the explosion in COVID-19 cases from the fast-spreading omicron variant, the economy’s future continues to look good.

    “The mild impact of the omicron wave, despite the high number of cases, points toward a brighter post-pandemic horizon, a sentiment which underpins a more bullish outlook on the economy,” Ratiu says.

    How to secure a favorable mortgage rate

    If you took out your mortgage when rates were higher than they are today, or if want to refinance from a 30-year to 15-year home loan, you’ll want to ensure you’re doing all you can to get the lowest rate.

    That means comparing offers from at least five lenders, which can maximize your savings on a refi, according to research from Freddie Mac and others.

    Lenders like to see strong credit histories. If you haven’t looked at your score in a while, it’s easy today to review your credit score for free.

    If your credit could use some work — perhaps you’ve accumulated a bunch of new debt during the pandemic — you might consider rolling credit balances into a lower-interest debt consolidation loan. By doing so, you can reduce your interest costs and potentially eliminate the debt faster.

    And if you’re not a candidate for a refi, there are other ways to lower your homeownership costs. When it comes time to buy or renew homeowners insurance, flex your comparison shopping muscles again. You might just find a lower rate on your coverage.

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

    News Related

    OTHER NEWS

    'The Power of the Dog' leads Oscar field with 12 nominations, followed by 'Dune' with 10

    LOS ANGELES — ‘The Power of the Dog’ leads Oscar field with 12 nominations, followed by ‘Dune’ with 10. Read more »

    The Xbox Share button is getting more customizable thanks to controller remapping

    © Illustration by Alex Castro / The Verge Microsoft will soon allow Xbox Series X / S owners to fully customize the Share button on their controllers. While you’ve been ... Read more »

    Sky Executive Jane Millichip, Distribution Leader and Key Architect of Sustainability Drive, to Step Down After 9 Years

    Sky executive Jane Millichip, a distribution leader and a driving force behind the company’s sustainability drive, is leaving the company after almost 10 years. News of the executive’s departure was ... Read more »

    Asteroid Named In Honor of Late Avant-Pop Musician Sophie: Sophiexeon

    More than a year after futuristic, avant-garde transgender musician Sophie died at age 34 after a fall from a balcony in Athens while attempting to take a picture of the ... Read more »

    Super Bowl 2022: Everything to know about the halftime show and other musical performances

    The Super Bowl is more than just the biggest football game of the year. While the annually televised event may be the crown jewel in the pantheon of American sports, ... Read more »

    Oscar nominations 2022: 'The Power of the Dog' leads with 12, 'Dune' scores 10

    Oscar voters spread the love between multiple contenders when the Academy Awards nominees were announced Tuesday morning, though “The Power of the Dog” looked close to a front-runner with 12 ... Read more »

    Oscars 2022: Andrew Garfield, Benedict Cumberbatch and Olivia Colman among Brits leading nominations

    Image: Andrew Garfield in tick…BOOM! Pic: Macall Polay/Netflix Andrew Garfield, Benedict Cumberbatch, Olivia Colman, Dame Judi Dench and Kenneth Branagh lead the British charge at the Oscars, after bagging nominations ... Read more »

    Art Pepper wrote Patricia for the daughter from whom he estranged

    PatriciaArt Pepper (1956 & 1978) Her father made no contribution to Patricia Pepper’s happiness in life, but jazz musician Art Pepper did compose a beautiful ballad for her, Patricia. Jazz ... Read more »

    List of nominees for the 94th Academy Awards

    LOS ANGELES — Nominees for the 94th Academy Awards, which were announced Tuesday via a livestream. Winners will be announced on March 27 in Los Angeles. Best actor: Original screenplay: ... Read more »

    Angelina Pivarnick splits from husband

    © Bang Showbiz Angelina Pivarnick’s marriage is over Angelina Pivarnick has split from her husband. The ‘Jersey Shore’ star’s spouse, Chris Larangeira, filed for divorce in New Jersey on 22 ... Read more »

    Oscar 2022 nominations as they happen

    Oscar nominations for the 94th Academy Awards have started to be unveiled ahead of this year’s ceremony. The movies expected to be in contention include The Power of the Dog, ... Read more »

    Liam Neeson's worried Seth MacFarlane’s Naked Gun reboot could end his career

    © Provided by Total Film Liam Neeson in Taken 2 There’s been no official word on a Naked Gun reboot, but Liam Neeson can’t stop talking about his trepid excitement ... Read more »

    Kate Middleton's latest project proves she's the 'Children's Princess'

    © Provided by Woman&Home Kate Middleton’s project proves ‘Children’s Princess’ title Kate Middleton’s more recent project has proved her ‘Children’s Princess’ title as the Duchess of Cambridge has agreed to ... Read more »

    Avril Lavigne pushes UK and European tour back until 2023

    © Bang Showbiz Avril Lavigne postpones tour dates to 2023 Avril Lavigne has pushed back her UK and European tour to 2023. The ‘Bite Me’ star was originally set to ... Read more »

    Janet Jackson gets 'embarrassed' hearing her songs on the radio

    © Bang Showbiz Janet Jackson can’t stand listening to her own songs Janet Jackson gets “embarrassed” when she hears her music on the radio. The ‘Rhythm Nation’ hitmaker has confessed ... Read more »

    ‘The epitome of joy’: 10 of Lata Mangeshkar’s greatest songs

    © Provided by The Guardian Photograph: AFP/Getty Images Sitting in the back of my parents’ Peugeot 504 as a child, we listened to songs by the likes of Mukesh, Mohammed ... Read more »

    Cleveland’s 2022 Blax Museum event showcases historic Black artists in virtual format

    © Henryk Sadura / Getty CLEVELAND, Ohio – The pandemic led to new formats for Cleveland arts event Blax Museum, organized by local writer Michelle R. Smith. This year, the ... Read more »

    Conductor Simon Rattle receives Germany's highest honor

    © Provided by Associated Press Conductor Simon Rattle holds the ‘The Order of Merit of the Federal Republic of Germany’ after he received it by German President Frank-Walter Steinmeier during ... Read more »

    2022 Oscar nominations to be announced: WATCH LIVE

    © shalunts / Getty Oscar nominations are about to be announced, and this year, a major change takes effect for the coveted best picture category. The nominees for the 94th ... Read more »

    Brit Awards nominations 2022: Full list of Brits nominees and what time to watch the ceremony on TV tonight

    © Provided by The i Adele makes a return to the stage for the Brits. (Photo: CBS/Getty/Cliff Lipson) Music fans are in for a night of big name performances, as ... Read more »

    Austin ISD to remove sixth grade from Martin, Mendez middle schools

    © Rodolfo Gonzalez/Special to American-Statesman Volunteers head out to block-walk as part of the Austin school district’s Operation Reconnect last June at Mendez Middle School. The district is taking a ... Read more »

    Pandora Sued By Estates of Robin Williams, George Carlin & Other Comedians Over Joke-Writing Licensing Fees

    Pandora is accused of shortchanging comedians by neglecting to obtain the proper copyrights to stream their works, according to a series of lawsuits filed on Monday (Feb. 7) in California ... Read more »

    Mandy Moore Talks Self-Care, Motherhood, and the End of 'This Is Us'

    © Provided by Health Ben Watts There’s something sweetly poetic about this time in Mandy Moore’s life. The 37-year-old star is wrapping the final season of NBC’s hit show This ... Read more »

    Lemondrop and Fireball review: Impossibly small, surprisingly powerful synths

    Korg jump-started the craze for affordable, portable synths when it launched the Volca series in 2013. Major players like Roland got in on the action. As did more niche companies ... Read more »

    Red Hot Chili Peppers may release another album this year

    The Red Hot Chili Peppers have tentative plans to release another album this year. The American band, who released his record on April 1 Unlimited Love releases has enough material ... Read more »

    Zac Brown is first to sign up for 2022 State Fair Grandstand show

    © Provided by WCCO Radio Minneapolis Zac Brown The Minnesota State Fair on Tuesday announced the Zac Brown Band is the first to sign up for a Grandstand show at ... Read more »

    Capital Chordsmen, Barbershop Ladies present singing valentine's for sweethearts

    Once again this year, The Capital Chordsmen and their sister chorus, The Barbershop Ladies of Tallahassee, will send their quartets to Tallahassee and surrounding counties to sing serenades for  Valentine’s ... Read more »

    Elton John ‘Farewell’ tour in Detroit: How to get last-minute tickets for tonight, tomorrow

    DETROIT – This could be one of your last chances to see Elton John live in concert. The Rock and Roll Hall of Famer brings his “Farewell Yellow Brick Road ... Read more »

    RIT/NTID grad will sign language-interpret Super Bowl halftime show

    © Noah Elliott Morrison Deaf rapper Sean Forbes performs at Third Man Detroit on Feb. 21, 2020, during a release party for his album “Little Victories.” Super Bowl LVI will ... Read more »

    What to watch for Black History Month: 10 movies, TV shows that celebrate Black joy

    Black History Month is a time to learn and reflect about the impact historical figures have made and the struggles they’ve overcome. But it’s also important to make time this ... Read more »

    First University Challenge host Bamber Gascoigne dies aged 87

    TV presenter and author Bamber Gascoigne has died at the age of 87 following a short illness. Gascoigne, best known as the original host of BBC’s University Challenge, died at ... Read more »

    Oscar predictions 2022: who is likely to win the biggest awards?

    © House of Lady Gaga in House of Gucci House of Gucci It’s ‘inevitable’ that some of the big films will miss out this year Oscar nominations are to be ... Read more »

    Coleen Nolan opens up about heartbreak following loss of 'second mum'

    Coleen Nolan has shared her heartbreak following the loss of her “second mum”. The singer and TV personality appeared on Monday’s Loose Women along with Ruth Langsford, Linda Robson, and ... Read more »

    UK festival line-ups 2022: The best tickets to buy now, from Parklife to Victorious

    © Press image GreenManFestival1509 There were times when it didn’t look like it would happen, but the UK’s festival summer finally arrived in 2021 — and what a blast it ... Read more »

    McMahon wants metric to end masks in schools; more top stories (Good Morning CNY for Feb. 8)

    © Dennis Nett | dnett/syracuse.com/TNS Subscribe to get the Good Morning, CNY newsletter delivered to your email inbox weekday mornings. Weather High: 33; Low: 16. Cloudy, colder, snow showers. See ... Read more »

    Looking for things to do in Sioux Falls? Here are 7 winter events to check out

    It may be freezing outside almost everyday, and the TV might seem inviting, but Sioux Falls knows how to make the season entertaining with both indoor and outdoor events. Go ... Read more »

    Musicians union: Casa Mañana violating contract by using recorded score for ‘Matilda’

    © Nate Hovee / Getty Casa Mañana is presenting Matilda the Musical without a live orchestra, which violates the Fort Worth theater’s contract with the local chapter of the American ... Read more »

    Want to help decorate Panama City Beach? Officials have launched a public art project.

    SeeLife Statues were unveiled at the Panama City Beach City Hall on Friday. SeeLife Statues were unveiled at the Panama City Beach City Hall on Friday. SeeLife Statues were unveiled ... Read more »

    As Britt Daniel returns to Austin, Spoon revisits its rock 'n' roll roots

    © Photo: Oliver Halfin Spoon Britt Daniel knew he wanted to record Spoon’s 10th album in Austin, Texas. After recording the band’s previous two albums in rural upstate New York, ... Read more »

    Collective Soul, Better Than Ezra, Colbie Caillat to headline Euphonious festival 2022

    Euphonious, a music and technology festival, will return to Birmingham in 2022 with a lineup that features Collective Soul, Better Than Ezra and Colbie Caillat. Organizer Bradley Metrock today announced ... Read more »