Mortgage Market Update
mortgage
Mortgage Rates Rose Again This Week to 4.08%, With Russian Invasion of Ukraine Adding New Uncertainty to Rate Forecast. Rates have been hitting levels not seen since before the pandemic.
A year before the COVID-19 pandemic upended economies across the world, the average interest rate for a 30-year fixed-rate mortgage for 2019 was 3.94%. The average rate for 2021 was 2.96%, the lowest annual average in 30 years.
However, currently the average 30-year fixed mortgage rate reached up this week to 4.08% as a recent upward trend in rates continued, but new uncertainty stemming from Russia’s invasion of Ukraine could lead to more volatility moving forward. The 15-year mortgage rate dropped this week to 3.14%, down from 3.15% last week and up from 2.34% last year. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) remained unchanged from last week’s 2.98%, a decrease from 2.99% last year.
Mortgage rates have been pushed up in recent months by a combination of economic factors, including inflation and anticipation that the Federal Reserve will begin raising its benchmark short-term interest rate in mid-March.
Global financial impacts are likely to be a ripple effect of the war, which has already come with significant human costs. Ukrainian President Volodymyr Zelensky said more than 100 Ukrainians were killed in the first day of fighting, with hundreds more wounded. Ukrainian citizens have sought to flee the country or take up arms in defense as the invasion upends daily life in the country of more than 40 million. With that said, even before Russia’s invasion of Ukraine, there has been a lot of uncertainty affecting the mortgage market, with COVID, inflation, etc.
The city with the lowest median days on market is the Nashville metro area at 29 days, or about half the national figure. The median listing price in Nashville was $453,000, up 13.8%. 24/7 Wall St. reviewed Reltor.com’s report to find the 25 American cities running out of houses for sale.
It is evident that Rising interest rates could cause home prices to stop rising as fast or even come down a bit.
Today’s Rate
Daily rate based on: SFR/Primary/LTV60/FICO 780/Purchase
IMPORTANT: Advertised rates were valid and effective as of the date reflected above, are for informational purposes only, and are subject to change without notice.
Loans are subject to credit and collateral approval. Advertised rates are based on a set of loan assumptions including a borrower with excellent credit history and optimal loan characteristics. Your final interest rate and annual percentage rate (APR) may differ depending on your individual transaction’s specific characteristics, and certain products may not be available for your situation. Several determining factors include, but are not limited to, the state of the property location, loan amount, documentation type, loan type, occupancy type, property type, loan to value, and credit score.
APR reflects the cost of credit over the term of the loan expressed as an annual rate. For mortgage loans, APR may include the interest rate, discount points (also referred to as “points”), and other charges or fees (such as mortgage insurance and origination fees), but does not necessarily take into account other loan-specific finance charges you may be required to pay.
Golden Star, Inc. dba Transglobal Lending, 185 W. Chestnut Ave., Monrovia, CA 91016, NMLS # 1437002 (www.transgloballending.com). All rights reserved. Equal Opportunity Employer and Equal Housing Lender. All mortgage products are subject to credit property approval. Rates, Program terms and conditions are subject to change without notice. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend.
