Mortgage rates continued moving upward, along with inflation. | Adobe Stock
Mortgage rates continued moving upward, along with inflation. | Adobe Stock
According to the latest survey data from Freddie Mac, the 30-year fixed mortgage rate rose from 4.42% a week ago, to 4.67% as of March 31. As inflation continues to be an issue, this number stands to climb. In the state of Michigan, the average rate is 4.94%.
The Wall Street Journal (WSJ) reported that for the first time in four years, rising home-loan rates are within 5%.
Roughly two months ago, the regular 30-year fixed-rate mortgage was 3.59%, according to nerdwallet.com.
Phil Shoemaker, president of originations at Homepoint Financial Corp., a Michigan-based mortgage lender, told the WSJ, “It’s going to take a pretty healthy increase in rates to moderate the demand.”
The WSJ reported that the rising home costs have pushed homeownership out of the equation for a lot of Americans with the average home price rising 15% in February from the previous year.
Freddie Mac reported that its rate survey, which ends every Thursday, shows the estimated rate a home buyer with robust credit, along with a 20% down payment, are currently seeing when they apply for a mortgage. Home buyers with lower credit scores will typically be offered higher rates.
Bankrate.com reports that at the end of March, the going rate for a 30-year fixed mortgage in Michigan was 4.94%.
Last month, Charlie Bilello, founder and CEO of Compound Capital Advisors, said on Twitter: "The 30-year mortgage rate in the US rises to 4.67%, its highest level since December 2018. Last year it hit an all-time low of 2.65%. The 0.82% increase in mortgage rates over the last 3 weeks is the largest 3-week spike we've seen since May 1987."
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