The 30-year fixed average has climbed nearly two percentage points since the start of the year
Freddie Mac, the federally chartered mortgage investor, aggregates rates from around 80 lenders across the country to come up with weekly national averages. The survey is based on home purchase mortgages. Rates for refinances may be different. It uses rates for high-quality borrowers with strong credit scores and large down payments. Because of the criteria, these rates are not available to every borrower.The 15-year fixed-rate average jumped to 4.17 percent with an average 0.9 point. It was 3.
Mortgage rates are being driven higher by rising inflation. The consumer price index, released Tuesday by the Bureau of Labor Statistics, showed prices grew 8.5 percent in March compared with a year ago. It was the largest annual increase since December 1981. On Wednesday, the BLS released the March producer price index, which tracks prices paid by wholesalers. It climbed 11.2 percent from a year ago, its biggest gain since 2010.
Because mortgage rates tend to follow the same path as long-term bonds, they have been trending higher as well. It is not only rising rates that are making home loans more expensive. As of April 1, the Federal Housing Finance Agency implemented a fee increase for some Fannie Mae and Freddie Mac home loans. Mortgages that FHFA considers “high balance” or mortgages for a second home are now more expensive.High-balance loans are mortgages above the conforming national baseline limit . Fees for high-balance loans increased between 0.25 and 0.75 percent, tiered by loan-to-value ratio.
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