United States mortgage rates continued to climb further, reaching the highest level in over three years. XHB is down 1.19%, while ITB is down 1.32%.
- The 30-year average loan rate jumped to 4.42% from 4.16% in the past week, reaching the highest level since January 2019.
- The 30-year monthly payment on a $300,000 loan now stands at $1,506, up from the $1,301 at the start of 2022.
- The increase is in line with the growth in the 10-year Treasury yields after the Federal Reserve hiked its benchmark interest rate last week.
- The increase is expected to drive home-loan costs even higher at the end of the year, but uncertainties remain due to the global turmoil.
- A number of prospective homebuyers in the United States have postponed their purchases in the past months due to inflation and higher home prices.
- Some of the buyers who entered the market during the onset of the COVID-19 pandemic rushed to refinance and took advantage of record-low mortgage rates.