Freddie Mac reported today the 30-year fixed-rate mortgage rate moved up more than a half a percentage point, making this the largest one-week increase in the its survey since 1987. This rate is well above the 2.93 percent recorded just one year ago and is the steepest level since 2008. The Freddie Mac average is based on its survey of lenders which was conducted prior to the central bank’s Wednesday meeting in which the rates were increased by three-quarters of a point. Some rates climbed as high as 6 percent after the meeting.
“These higher rates are the result of a shift in expectations about inflation, and the course of monetary policy,” said Sam Khater, Freddie Mac’s chief economist. “Higher mortgage rates will lead to moderation from the blistering pace of housing activity that we have experienced coming out of the pandemic, ultimately resulting in a more balanced housing market.”