Mortgage Rates Surge To 6 Percent – Bankrate.com

insurance

Financing a home purchase
Refinancing your existing loan
Finding the right lender
Additional Resources
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Compare Accounts
Use calculators
Get advice
Bank reviews
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Compare by category
Compare by credit needed
Compare by issuer
Get advice
Looking for the perfect credit card?
Narrow your search with CardMatch™
Personal Loans
Student Loans
Auto Loans
Loan calculators
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Best of
Brokerages and robo-advisors
Learn the basics
Additional resources
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Get the best rates
Lender reviews
Use calculators
Knowledge base
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Selling a home
Buying a home
Finding the right agent
Additional resources
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Car insurance
Homeowners insurance
Other insurance
Company reviews
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Retirement plans & accounts
Learn the basics
Retirement calculators
Additional resources
Elevate your Bankrate experience
Get insider access to our best financial tools and content
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for .
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our mortgage reporters and editors focus on the points consumers care about most — the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more — so you can feel confident when you make decisions as a homebuyer and a homeowner.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
Mortgage rates surged into 6 percent territory this week as inflation in May came in hotter than projected and the bond market swung wildly in response to how the Federal Reserve might react. On Wednesday, the Fed announced a three-quarter point hike in its key fed funds rate, with further increases planned this year.
Inflation is out of control and until it peaks, neither will mortgage rates.
— Greg McBrideChief financial analyst, Bankrate
With the exception of adjustable-rate mortgages (ARMs) and home equity products, the Fed’s actions don’t influence mortgage rates — but as observed this week, speculation in the lead-up to its decisions does. Fixed mortgage rates track the 10-year Treasury yield, which reached a year-high this week after Friday’s consumer price report revealed a staggering 8.6 percent increase in prices in May.
“Inflation is out of control and until it peaks, neither will mortgage rates,” says Greg McBride, CFA, chief financial analyst for Bankrate. “The fresh 40-year high in the May Consumer Price Index and the surge in consumers’ inflation expectations has forced the Fed to act more aggressively and produced one of the biggest one-week spikes in bond yields and mortgage rates in decades.”
“Consumers haven’t seen mortgage rates above 6 percent since 2008,” says Greg Schwartz, CEO and founder of mortgage lender Tomo. “The pace of this move is what’s most concerning as consumers’ buying power evaporated quicker than any time in recent memory. Further, volatility in rates may not decrease anytime soon either.”
Ahead of the conclusion of the Fed meeting on Wednesday, Bankrate’s average 30-year fixed mortgage APR landed just shy of 6 percent, at 5.990 percent. However, advertised loan offers surpassed 6 percent, even for well-qualified borrowers.
Bankrate’s 30-year benchmark from our weekly national survey jumped to 5.78 percent. Compared to last week’s benchmark 5.36 percent, borrowers will now pay $26 more a month per $100,000 of mortgage. At 6 percent, that’ll climb to $40 more.

Mortgage rates started ticking up in January following a period of historic lows in 2020 and 2021. By February, the 30-year average exceeded 4 percent, continuing on past 5 percent in April. That run-up has given borrowers pause, with mortgage applications recently diving to a 22-year low, according to the Mortgage Bankers Association.
“The speed in which mortgage rates went from 3 percent in January to 6 percent in June is rather astonishing,” says Charlie Crawford, chairman and CEO of Hyperion Bank, a community bank serving Greater Philadelphia and Atlanta. “This change will certainly dampen mortgage demand and, with the exception of cash-out, will curtail most refinances. The residential real estate market remains strong with the low inventory levels.”
“Any persistent or obvious signs of a wage or inflationary spiral will continue to lead to more aggressive policies,” says Robert Heck, vice president of Mortgage at Morty, a mortgage broker. “If things progress as they are, it’s possible we’ll see mortgage rates head towards 7 percent or higher, on par with the inflationary environment of the 1980s.”
Bankrate.com is an independent, advertising-supported publisher and comparison service. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation may impact how, where and in what order products appear. Bankrate.com does not include all companies or all available products.
Bankrate, LLC NMLS ID# 1427381 | NMLS Consumer Access
BR Tech Services, Inc. NMLS ID #1743443 | NMLS Consumer Access
© 2022 Bankrate, LLC. A Red Ventures company. All Rights Reserved.

source

Leave a Reply

Your email address will not be published. Required fields are marked *