largest weekly increase in mortgage rates since 1987, at 5.78 percent
June 16th, 2022
Since 1987, the increase is the biggest in one week. The 30-year fixed-rate mortgage's average rate increased from 5.23 percent the week before to 5.78 percent in the week ending June 16.
This year, rates have increased by more than 2.5 percentage points. At this time last year, they were at an average of 2.93 percent.
Since January, rates have increased dramatically, significantly raising the cost of buying a home.
In response to worse-than-expected inflation numbers last week & in expectation of Federal Reserve rate hikes on Wednesday, the avg ortgage rate has risen this week.
The Federal Reserve delivered on its commitment to boost rates to combat inflation by raising the interest rate goal by 75 basis points, the highest increase in in three decades.
Mortgage rates are usually correlated with 10-year US Treasury bonds.
However, the Fed's activities on inflation have an indirect impact on mortgage rates.
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