MORTGAGE RATES CLIMB: Borrowing costs for a conventional home loan have more than doubled over the last year. onyourside mortgagerates alabamanewsnetwork
The average rate on 15-year, fixed-rate mortgages, popular among those looking to refinance their homes, rose to 5.16% from 4.98% last week. That's the first time the 15-year rate has been above 5% since 2009, as the real estate market went into a years-long slump. Last year at this time the rate was 2.19%.for a conventional 30-year mortgage, according to Moody's Analytics chief economist Mark Zandi.— have cooled off a housing market that has been hot for years.
"The higher cost of homeownership has clearly eroded affordability, as inflation-adjusted monthly mortgage expenses are now even higher than they were at their former peak in 2006," Selma Hepp of real estate research firm CoreLogic, said this week of the impact of rising mortgage rates. Mortgage rates don't necessarily mirror the Fed's rate increases, but tend to track the yield on the 10-year Treasury note. That's influenced by a variety of factors, including investors' expectations for future inflation and global demand for U.S. Treasurys.