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Mortgage interest rates hover below 5%

Home Sales
Posted at 8:04 AM, Apr 06, 2022
and last updated 2022-04-06 10:04:24-04

A survey released on Wednesday shows the average interest rate kept climbing last week.

The average contract rate on a 30-year fixed-rate mortgage rose to 4.9% last week from the previous week, the Mortgage Bankers Association reported.

This kept mortgage rates at their highest level since late 2018.

Since the beginning of 2022, mortgage rates have risen by 1.6%, bringing up home borrowing costs.

The numbers come as the Federal Reserve says it will take steps to curb inflation, including raising its benchmark overnight lending rate.

UBS estimates that 30-year fixed mortgage rates will be of concern when they reach 5.75%, according to MarketWatch.

However, UBS said it does not anticipate another housing crisis like the one the U.S. experienced in 2008.