Led by rapidly rising inflation as well as the prospect of strong demand for goods and ongoing supply disruptions, 30-year fixed-rate mortgage averaged 4.67% with an average 0.8 point for the week ending Mar. 31, 2022, up from last week when it averaged 4.42%; higher than 3.18% a year ago, according to the Freddie Mac Primary Mortgage Survey.
This marks the highest reading since December 2018 levels and has unfolded to these levels faster than expected.
"Purchase demand has weakened modestly but has continued to outpace expectations. This is largely due to unmet demand from first-time homebuyers as well as a select few who had been waiting for rates to hit a cyclical low," Chief Economist Sam Khater commented.
15-year fixed-rate mortgage averaged 3.83% with an average 0.8 point, up from last week when it averaged 3.63% and a year ago at this time, the 15-year FRM averaged 2.45%.
5-year Treasury indexed hybrid adjustable-rate mortgage averaged 3.50% with an average 0.3 point, up from last week when it averaged 3.36% and a year ago at this time, the 5-year ARM averaged 2.84%.
Quick look at the Mortgage ETF vs. S&P500 comparison in past 5-years:
Mortgage Bankers Association indicates that, number of applications submitted by hopeful home buyers has risen for three of the past four weeks despite higher mortgage rates.
Refinancings are expected to make up 33% of mortgage originations this year, down from 59% in 2021, according to the Mortgage Bankers Association.
The March national median listing price for active listings was $405K up 13.5% compared to last year and 26.5% compared to March 2020, as per to Realtor.com economist Danielle Hale as cited by HousingWire.
National inventory of active listings declined by 18.9% Y/Y, while the total inventory of unsold homes, including pending listings, declined by 12.5%.
"Given the speed of the mortgage rates increase we're still not quite settled on whether this is volatility and you will see rates moving in both directions, or whether this is just a level shift and we will stay here at the higher level," MBA Economist Michael Fratantoni commented.