Mortgage rates have taken a big leap at the start of the new year. In the first week of 2022, the 30-year fixed-rate mortgage jumped nearly 60 basis points higher than a year earlier, averaging 3.22% this week, Freddie Mac reports.
“Mortgage rates increased during the first week of 2022 to the highest level since May 2020 and are more than half a percent higher than January 2021,” says Sam Khater, Freddie Mac’s chief economist. “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 home buyer growth.”
The National Association of REALTORS® forecasts that mortgage rates will average 3.7% by the end of this year.
Source: Freddie Mac and “Instant Reaction: Mortgage Rates, January 6, 2022,” National Association of REALTORS® Economists’ Outlook blog
