Mortgage rates surged close to 7% this week, breaking another record-high not seen in two decades as inflation pressures mount and home shoppers retreat even further from the housing market.
The average 30-year, fixed-rate mortgage jumped to 6.92% the week ending Oct. 13, according to Freddie Mac. The most popular mortgage product jumped 26 basis points from last week and was the highest level since April 2002. A basis point is one-hundredth of a percentage point. At this same time last year, the rate was more than half that level, at 3.05%.
The 15-year, fixed-rate mortgage averaged 6.09% this week, up from 5.9% a week before and 2.3% a year ago.
The average 5/1 adjustable-rate mortgage (ARM) was at 5.81%, up from 5.36% last week and 2.55% a year ago. As borrowing costs have surged, ARMs have become more popular since they now have a lower rate than fixed-rate mortgages. ARMs made up 11.7% of all applications for mortgages for the week ending Oct. 7, according to the latest Mortgage Bankers Association (MBA) report. That’s significantly up from just 3% of mortgage applications in January 2022.
The rates above don’t include fees or other costs associated with obtaining home loans.
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Source: www.forbes.com
ENB
Sandstone Group
