June 30, 2022
The rapid rise in mortgage rates has finally paused, largely due to the countervailing forces of high inflation and the increasing possibility of an economic recession. This pause in rate activity should help the housing market rebalance from the breakneck growth of a seller’s market to a more normal pace of home price appreciation.
Information provided by Freddie Mac.
For Week Ending June 18, 2022
The 30-year fixed rate mortgage averaged 5.78% the week ending 6/17, rising 55 basis points from the previous week and marking the largest one week increase since 1987, according to Freddie Mac. Mortgage rates are nearly double compared to this time last year, with rates spiking following the Federal Reserve’s recent decision to raise the benchmark interest rate by three quarters of a percentage point in order to help quash rising inflation.
IN THE TWIN CITIES REGION, FOR THE WEEK ENDING JUNE 18:
FOR THE MONTH OF MAY:
All comparisons are to 2021
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
June 23, 2022
Fixed mortgage rates have increased by more than two full percentage points since the beginning of the year. The combination of rising rates and high home prices is the likely driver of recent declines in existing home sales. However, in reality many potential homebuyers are still interested in purchasing a home, keeping the market competitive but leveling off the last two years of red-hot activity.
Information provided by Freddie Mac.
For Week Ending June 11, 2022
To help fight rising inflation, which hit 8.6% as of last measure, the Federal Reserve raised interest rates by three quarters of a percentage point, the largest interest rate hike in 28 years. The U.S. central bank will boost its short-term policy rate to 1.50% – 1.75%, increasing consumer borrowing costs on everything from credit cards to car loans. This marks the third rate increase this year, with the Fed planning additional rate increases throughout the year.
IN THE TWIN CITIES REGION, FOR THE WEEK ENDING JUNE 11:
FOR THE MONTH OF MAY:
All comparisons are to 2021
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.