Mortgage rates saw the biggest drop in 14-years last week. This week was a different. Rates reversed course and jumped over 20 basis points, according to Freddie Mac’s latest weekly survey…(Freddie Mac)
The 30-year fixed jumped 21 basis points to 5.51% for the week ending July 14th. This is 262 basis points higher than the same time last year. The 15-year was up 22 basis points to 4.67% which is 245 basis points higher than one year ago.
- NOTE: The 5/1 ARM was up 16 basis points to 4.35%, this is 188 basis points higher than one year ago.
Sam Khater, Freddie Mac’s Chief Economist said that homebuying conditions are still unfavorable to buyers. “With rates the highest in over a decade, home prices at escalated levels, and inflation continuing to impact consumers, affordability remains the main obstacle to homeownership for many Americans.”
Before Wednesday’s CPI report there was some optimism in the finance/economic community that the worst could be behind us which could mean lower rates on the horizon. That however changed quickly after the CPI print. Lawrence Yun, chief economist for NAR, told Realtor Magazine, “The Fed may be forced to raise interest rates even more aggressively than planned—even with the rising possibility of a recession on the horizon…The mortgage market had already factored in several additional rounds of the Fed’s rate hike but may have to adjust a bit higher based on today’s uncomfortable inflation rate.”