After several years of historically low mortgage rates, the 30-year fixed-rate mortgage averaged 5.00 percent for the first time in more than a decade according to mortgage loan company Freddie Mac. That is up nearly two percentage points from a year ago at this time. As of April 14, 2022, the 15-year fixed-rate mortgage averaged 4.17 percent and the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.69 percent.
Many potential homeowners are concerned how the rate increase may impact their buying power. A new quarterly forecast from Freddie Mac's Chief Economist predicts the single-family purchase market will remain solid in 2022 and that the overall housing market will remain a bright spot in the U.S. economy. Specifically, the findings predict the 30-year fixed-rate mortgage should average 4.6 percent in 2022 and 5.0 percent in 2023. In 2021, the 30-year averaged 3.0 percent.
Curious what the changes mean for your monthly mortgage payment? In this brief video we break down the impact and give some perspective on rates over the past few decades.