Mortgage rates surged again this week on inflation concerns, hitting the highest point in 22 months that sent homebuyers scrambling to lock in rates.
Many homeowners, on the other hand, face a shrinking opportunity to refinance.
The rate on the 30-year fixed rate mortgage – the most common home loan for buyers – increased to 3.56% from 3.45% last week, according to Freddie Mac. That is the highest rate since the third week of March 2020. The 15-year fixed-rate mortgage, a popular refinance choice, similarly increased to 2.79% from 2.62%.
“Mortgage rates moved up again as the 10-year U.S. Treasury yield rose and financial markets adjusted to anticipated changes in monetary policy that will combat inflation,” Sam Khater, Freddie Mac’s chief economist, said in a statement.
Fixed mortgage rates tend to follow the yield on the 10-year Treasury, which has jumped to its highest level since December 2019 on expectations that the Federal Reserve will make moves — including hiking its short-term benchmark rate — to tame inflation.