Sub-3% mortgage rate streak comes to an end

Inflation finally catches up

Sub-3% mortgage rate streak comes to an end

An increase in mortgage rates has ended a 10-week streak of sub-3% rates, Freddie Mac reported Thursday.

For the first time since April, the benchmark 30-year fixed-rate mortgage rose above 3%, up nine basis points to 3.02%. Freddie Mac chief economist Sam Khater expects this upward trend to continue.

“As the economy progresses and inflation remains elevated, we expect that rates will continue to gradually rise in the second half of the year,” he said.

The 15-year fixed-rate mortgage also increased week over week, up from 2.24% to 2.34%. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) increased one basis point to 2.53%.

“For those homeowners who have not yet refinanced – and there remain many borrowers who could benefit from doing so – now is the time,” Khater said.