Almost one year after mortgage rates hit an all-time low, mortgage rates spiked the past few weeks, according to data compiled by Credible. This time last year, mortgage rates were at 2.65% for a 30-year home loan. However, in recent weeks, that number has ballooned to 3.750 percent.
Freddie Mac’s Chief Economist Sam Khater said in a statement: “With higher inflation, promising economic growth, and a tight labor market, we expect rates will continue to rise. The impact of higher rates on purchase demand remains modest so far given the current first-time homebuyer growth.”
For January 11, based on data compiled by Credible, mortgage rates have risen across all terms since yesterday.
● 30-year fixed mortgage rates: 3.750%, up from 3.625%, +0.125
● 20-year fixed mortgage rates: 3.750%, up from 3.250%, +0.500
● 15-year fixed mortgage rates: 3.000%, up from 2.625%, +0.375
● 10-year fixed mortgage rates: 3.000%, up from 2.500%, +0.500
Rates last updated on Jan. 11, 2022. These rates are based on the assumptions shown here. Actual rates may vary.
With longer terms sitting well over 3.500%, homebuyers who can manage a higher monthly payment stand to save the most on interest with a shorter-term mortgage. With further increases expected throughout 2022, locking in a rate today could allow buyers to avoid even bigger spikes. Bond market supply has been elevated over the past two weeks, and higher supply means higher rates.
