Mortgage Rates Surface 7% For The First Time In Over A Decade

Potential homebuyers who waited until this month instead of last may be regretting their decision. Inflation has pushed up the cost of buying a home by 12% in the last month alone. Mortgage payments have increased by $250 per month over the past month due to the rapid increase in mortgage rates, which Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, writes about on the NAR blog.

As a result of the increased interest rates, the housing market has slowed dramatically, with pending home sales down 24% month over month and existing home sales down 20% year over year in August.

This week, the average rate for a 30-year fixed mortgage was 6.70 percent, as reported by Freddie Mac. That's an annual growth rate of 1.02% over the previous year's 3.01%.

According to Freddie Mac's chief economist, "financial market uncertainty and volatility are having a significant impact on mortgage rates." He advises homebuyers to do their homework.

Freddie Mac believes According to the survey results, the variety in weekly rate quotes for 30-year fixed-rate mortgages has increased by more than 100% in the last year. This means that for a given mortgage amount, a borrower who locks in at the top of the range will pay several hundred dollars more than a borrower who locks in at the bottom of the range. Because of the vast range of interest rates, prospective homeowners must compare offers from many lenders more than ever before.

Current Weekly Average Mortgage Rates

For the week ending September 29th, 2022, Freddie Mac publishes the following nationwide averages for mortgage rates:

Rates for 30-year fixed mortgages averaged 6.70% with an average of 0.9 percent, up from 6.29% the previous week. When this time last year rolled around, the average rate for a 30-year loan was 3.01 percent.

15-year fixed-rate mortgages were 5.96% with an average of 1.3 points, up from last week's average of 5.44%. The average rate on a 15-year loan was 2.28% a year ago.

Mortgages with a 5-year adjustable rate component averaged 5.30% with a point cost of 0.40% last week, up from 4.97% the previous week. Five-year adjustable rates averaged 2.48% a year ago.

To more accurately reflect the full up-front costs of getting a mortgage, Freddie Mac reports commitment rates with average points.