Mortgage Rates for Fannie Mae, Freddie Mac Loans Reach 5%, an 11-Year High
The average U.S. 30-year fixed rate for so-called conforming loans given to the best-qualified borrowers is the highest since February 2011.
April 14, 2022 2 MIN
The average U.S. 30-year fixed rate for so-called conforming loans given to the best-qualified borrowers is the highest since February 2011.
The daily average rate for a 30-year fixed mortgage rose above 5% on Wednesday for the first time since 2018, according to Optimal Blue rate-lock data.
Mortgage rates reached a four-year high this week, boosting the average monthly home-loan payment by 20% from a year ago, Freddie Mac said.
Home-loan rates for so-called conforming mortgages eligible to be purchased by Fannie Mae and Freddie Mac increased to the highest level since the beginning of 2019.
The surge in lending for mortgages backed by the Department of Veterans Affairs came after rates dropped to a record low in the closing days of 2020.
Rates are surging after the Fed ended a pandemic-era bond-buying program and said it would discuss at its May meeting a reduction of its balance sheet.
The Fed's tightening of monetary policy sent mortgage rates soaring to a three-year high this week, making it tougher for families to buy homes.
The increase came as the Fed concluded a two-year program buying Treasuries and mortgage bonds to prevent a credit crunch during the pandemic.
Mortgage rates tumbled in the U.S. as the Russian invasion of Ukraine caused global investors to shift assets into dollar-denominated bonds.
Rates are rising as the bond markets lose their biggest buyer – the Federal Reserve.
Allowing the VA loan fees to reset as scheduled will save veterans and active-duty military members about $200 million annually, the lenders’ group said.
Shelling out more upfront means you'll get a lower rate and a smaller mortgage payment, but is it the right course for everyone?
Should you buy a house now, at whatever mortgage rate is available, and plan to refinance later?
Opting for an ARM instead of a fixed-rate mortgage can be a good strategy if a homebuyer doesn't plan to stay in the house for more than five to seven years.
