Mortgage rates in the US continued to expand, hitting a level not seen in over three years.
- The average for a 30-year loan was 4.42%, an increase from 4.16% last week, the highest level since January 2019.
- Borrowing costs followed another surge in 10-year Treasury yields. The Fed upgraded the benchmark interest rate by 0.25 percentage points last week, with more hikes possible in upcoming months.
- Russia’s invasion of Ukraine has hampered supply chains and financial markets, heightening the stakes of the Fed’s efforts to control inflation.
- Sam Khater, the chief economist at Freddie Mac, stated that the rising in mortgage rates is increasing monthly mortgage payments and quickly affecting the ability of homebuyers to keep up with the market.
At the start of the year, the monthly payment on a $300,000 loan at the 30-year average would stand at $1,301. Now, it has jumped to $1,506.Home-loan costs are anticipated to expand further by the close of the year.
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Source: Bloomberg
