The average 30-year mortgage rate inched up another notch in Freddie Mac’s latest weekly survey, hovering at levels last seen in July 2020, but falling short of where it was a year ago.
The current mortgage rate of 3.05% is slightly higher from than
Refinancing has been subsiding a little due to the upward trend in financing costs. However, consumers remain interested in borrowing in general because they want to do it before rates get much higher.
“My personal view is rates will continue to rise through this year as the country recovers,” said David Battany, executive vice president of capital markets at Guild Mortgage. “So rather than wishing you had yesterday’s or last week’s rates, consider that today’s rates will probably be better than a month from now.”
While refinancing has waned a little due to higher rates,
“Even as rates rise modestly, the housing market remains healthy on the cusp of spring homebuying season,” he said.
Also, given that the rate-indicative 10-year Treasury yield has been wavering in response to shifting market sentiments about inflation, it’s likely rates won’t climb steeply. The 10-year yield started the day at 1.5% and initially rose slightly to 1.54% Thursday morning.
“While the longer-term path forward for mortgage rate is almost certainly upward, … recent developments may indicate that the frantic upward trend in rates could subside,” Zillow Economist Matthew Speakman said in a press statement.
