Mortgage Rates Jump To 22-Month High

Mortgage rates jumped over 20 basis points this week, according to the Freddie Mac Prime Mortgage Market Survey…(Freddie Mac)

  • 30-YR FIXED jumped 23 basis points to average 3.45% for the week ending January 13th. This is 66 basis points higher than the same time one year ago.
  • 15-YR FIXED jumped 19 basis points to average 2.62% for the week ending January 13th. This is 39 basis points higher than the same time one year ago.

Sam Khater, Freddie Mac’s Chief Economist, noted climbing rates have not yet hurt the purchase market but we could be getting close…

  • “[The rate increase] 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. The rise in mortgage rates so far this year has not yet affected purchase demand, but given the fast pace of home price growth, it will likely dampen demand in the near future.”

NOTE: The last time rates were higher than this for a 30-yr fixed mortgage was March 26th, 2020 when rates hit 3.50% after a 15 basis points drop from the week prior.

ALSO NOTE: Mortgage Bankers Association reported an average rate of 3.52% for the week ending January 7th yesterday.