Mortgage Rates Increase Continuing a Seven-week Streak
Prospective homebuyers could be holding off after mortgage rates trend upward for the seventh week in a row, according to a recent report. Bond yields also ticked upwards as we reported yesterday, raising some fears around higher inflation.
"The 30-year fixed-rate mortgage averaged 4.4% for the week ending Feb. 22, up from last week when it averaged 4.38%, according to Freddie Mac," reported National Mortgage News.
"A year ago at this time, the 30-year fixed-rate mortgage averaged 4.16%."
There has always been a correlation between mortgage rates and bond yields but this increase also looks to be fueled by the Federal Reserve tightening up on the monetary side.
"Following the close of our survey, the release of the Federal Open Market Committee minutes for Feb. 21 sent the 10-year Treasury above 2.9%," according to the report.
"If those increases stick, we will likely see mortgage rates continue to trend higher," Len Kiefer, Freddie Mac's deputy chief economist, said in a press release."
To learn more about the steady increase in mortgage rates, click on the image above.
