According to mortgage giant Freddie Mac, the average rate on a 30-year fixed mortgage has risen to 5% for the first time since February 2011. The increase from last week marks the first time the rate has gone above 5% since February 2011. The 15-year fixed-rate mortgage has also seen a spike, with its rate climbing to 4.52%.
The average mortgage rate is typically the rate that a person with strong credit can expect to pay when they apply for a loan. On the other hand, a person with a lower credit score might be offered higher rates.
Keep in mind that different mortgage rates are available from different lenders. It’s important to compare offers and ask why they are higher than expected.
How are mortgage rates impacting home sales?
The number of mortgage applications decreased by 1.3% during the week ended April 8, according to the mortgage bankers’ association. The decline was mainly due to the decrease in refinance applications. Despite this, the number of purchase applications rose by 1% from the previous week compared to the same week last year, however, there was a 6% decline .