Inflation rates continue to be an issue, and that also means 30-year mortgage rates continue to climb across the nation—including the Quaker State, which has a rate approaching 5%.
As of Saturday, the current rate for a 30-year fixed mortgage in Pennsylvania is 4.92%, which is even higher than the national average, Bankrate.com said. Freddie Mac reported on March 31 that the national average rate for a 30-year fixed-rate mortgage rose to 4.67%. Only three months ago that number was drastically lower at 3.11%, and just two months ago the rate was 3.59%, a report by nerdwallet.com said.
This jump is something that is a major concern to economists.
“The 30-year mortgage rate in the U.S. rises to 4.67%, its highest level since December 2018,” Charlie Bilello, Compound Capital Advisors founder and CEO, said this week on Twitter. “Last year it hit an all-time low of 2.65%. The 0.82% increase in mortgage rates over the last three weeks is the largest three-week spike we’ve seen since May 1987.”
The Wall Street Journal (WSJ) reported that one week ago the fixed rate sat at 4.42%. It is the first time in five years the rate has been that close to 5%. The Journal also reported that the median sales prices of an existing home went up 15% in February from one year prior. Buying a home is starting to be an afterthought for many Americans due to inflation and home prices increasing at this high rate.
But the number of new mortgage applications has continued to rise recently. Homepoint Financial Corp. President of Originations Phil Shoemaker told WSJ that it will take a “healthy increase in rates to moderate the demand.”
Freddie Mac looks at rates for the week ending every Thursday when their rate survey is put together, a report this week by Money.com said. The average rate represents the approximate rate someone with strong credit and a 20% down payment can expect when applying for a mortgage. Those with lower credit scores are usually offered higher rates.
