Mortgage Rates Near 4% For the First Time Since 2019

After consecutive weekly gains at the start of 2022, the 30-year fixed-rate mortgage rose to 3.92% during the week ending February 17, Realtor.com reports. The 15-year fixed-rate mortgage also rose 22 basis points over the past week to an average of 3.15%, the highest increase since March 2020.

According to the most recent data from the Mortgage Bankers Association, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances was up to 4.05% last week, while the average for 30-year loans backed by the Federal Housing Administration hit 4.01%. The latest increase pushes the 30-year loan to its highest average rate since May 2019, making affordability an even more sizable hurdle for potential home buyers.

The long-term implications of the strain of higher mortgage rates have yet to materialize. Thus far, there’s evidence that rising rates have encouraged buyers who were perhaps hesitant to enter the markets to leap into action.

“At a time when the prospect of a sustained increase in mortgage rates has drawn fence sitters into the market, this means that the supply/demand imbalance in the single family segment of the market will become even more pronounced,” Richard Moody, chief economist for Regions Financial Corp., wrote in a research note Thursday.

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