Mortgage Rates Surge To 5.78%, Biggest Weekly Jump Since 1987

(RTTNews) - Mortgage rates, or interest rates on home loans, rates surged from last week driven by inflation expectations, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 5.78 percent for the week ending June 16, 2022, up from 5.23 percent last week. A year ago at this time, the average rate was 2.93 percent.

The 15-year FRM this week averaged 4.81 percent, up from 4.38 percent last week. A year ago at this time, the 15-year FRM averaged 2.24 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 4.33 percent, up from 4.12 percent last week. It was 2.52 percent a year ago.

"Mortgage rates surged as the 30-year fixed-rate mortgage moved up more than half a percentage point, marking the largest one-week increase in our survey since 1987," said Sam Khater, Freddie Mac's Chief Economist. "These higher rates are the result of a shift in expectations about inflation and the course of monetary policy. Higher mortgage rates will lead to moderation from the blistering pace of housing activity that we have experienced coming out of the pandemic, ultimately resulting in a more balanced housing market."