Mortgage rates chase ahead to the highest weekly growth in 35 years

Jun. 16, 2022 10:08 AM ETDHI, KBH, LEN, TOL, PHM, NVR, XHB, REM, REZ, HOMZBy: Khyathi Dalal, SA News Editor24 Comments

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  • Reaching to highest levels since November 2008, 30-year fixed-rate mortgage averaged 5.78% with an average 0.9 point for the week ending June 16, up from last week when it averaged 5.23% and higher than 2.93% a year ago, according to the Freddie Mac Primary Mortgage Survey.
  • Driven by the more than half a percentage point increase in 30-year fixed-rate mortgage, mortgage rates growth is the largest one-week increase in the survey since 1987.
  • 15-year fixed-rate mortgage averaged 4.81% with an average 0.9 point, up from last week when it averaged 4.38% and higher than 2.24% a year ago.
  • 5-year Treasury indexed hybrid adjustable-rate mortgage averaged 4.33% with an average 0.3 point, up from last week when it averaged 4.12% and higher than 2.52% a year ago.
  • "These higher rates are the result of a shift in expectations about inflation and the course of monetary policy. Higher mortgage rates will lead to moderation from the blistering pace of housing activity that we have experienced coming out of the pandemic, ultimately resulting in a more balanced housing market," chief economist Sam Khater commented.
  • Yesterday, the Fed raised interest rates by 0.75 percentage point, the biggest increase since 1994 while the Treasury 10-year yield reached its highest level in more than a decade.
  • Sales of earlier occupied U.S. homes slowed for the third consecutive month in April as mortgage rates surged, driving up borrowing costs for would-be buyers as home prices soared.
  • Homebuilding stocks are trading in red in early hours: (DHI), (KBH), (LEN), (TOL), (PHM), (NVR)
  • ETFs Watch: (XHB), (REM), (REZ), (HOMZ)

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