Mortgage rates are worsening, and there’s little chance for improvement.
For the fifth straight week this week, U.S. mortgage rates climbed, tacking on another 0.10 percentage points.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the average 30-year fixed rate mortgage rate for conventional home loans is now 3.91% nationwide.
It’s a 62-week high. Rates are expected to cross 4.00 percent within days.
Mortgage Rates Surge Higher Before The Weekend
Freddie Mac’s weekly mortgage rates are published Thursdays. This week, though, late-Friday morning, mortgage rates began another run higher.
Several hours after the government’s Bureau of Labor Statistics released its May jobs report, a sharp mortgage bond sell-off commenced, taking bond yields up and mortgage rates with them.
Mortgage bonds sank 75 basis points post-release, changing mortgage rates close to +0.250 percentage points.
If you were quoted a sub-4 percent rate in the AM, it was an above-4 percent rate by the afternoon. All mortgage rates were affected, too — not just conventional ones.
FHA mortgage rates climbed sharply on the day, as did VA mortgage rates and rates for USDA rural loans.
Between May 1 and June 6 — a span of five weeks — the monthly carrying cost of of mortgage has risen more than seven percent. By next week, that payment increase could top 10% easily.
It’s not tough to visualize the 30-year fixed at 4.125% nationwide.