US Mortgage Rates Climb to Three-year High 4.42%

Source: Bloomberg

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.