Mortgage Rates Soaring At Fastest Pace In Nearly 30 Years, Making Homes Even Less Affordable

Mortgage rates are soaring at the fastest pace in three decades as interest rates begin to rise.

According to government-backed mortgage company Freddie Mac, 30-year fixed-rate mortgages now average 4.72% — a sharp increase from 3.13% one year ago.

“Mortgage rates have increased 1.5 percentage points over the last three months alone, the fastest three-month rise since May of 1994,” Freddie Mac chief economist Sam Khater said in a press release. “The increase in mortgage rates has softened purchase activity such that the monthly payment for those looking to buy a home has risen by at least 20 percent from a year ago.”

Freddie Mac also revealed that the 15-year fixed-rate mortgage averages 3.83%, up from 2.42% one year ago.

Meanwhile, CNBC real estate correspondent Diana Olick wrote that total mortgage application volume is quickly plummeting — down 41% from one year ago. “Rising interest rates are crushing the mortgage market,” she explained, “as precious few homeowners can now benefit from a refinance and more potential homebuyers become priced out.”- READ MORE