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Post its 4-week increasing trend, 30-year fixed-rate mortgage averaged 3.55% with an average 0.7 point for the week ending Jan. 27, 2022, marginally down from last week's 3.56%; higher than 2.73% a year ago, according to the Freddie Mac Primary Mortgage Survey.
15-year fixed-rate mortgage averaged 2.80% with an average 0.6 point, inching higher from last week when it averaged 2.79% and a year ago at this time, the 15-year FRM averaged 2.20%.
5-year Treasury indexed hybrid adjustable-rate mortgage averaged 2.70% with an average 0.2 point, up from last week when it averaged 2.60% and a year ago at this time, the 5-year ARM averaged 2.80%.
"We do expect rates to continue to increase but at a more gradual pace. Therefore, a fair number of current homeowners could continue to benefit from refinancing to lower their mortgage payment," said Sam Khater, Freddie Mac’s chief economist.
The Fed has signaled that it would commence a series of interest rate hikes in March; "With inflation well above 2% and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate," FOMC statement said.
Mortgage applications declined 7.1% for Jan.21 week ended, Mortgage Bankers Association reported; drop was led by a 12.6% decrease in the trade group’s seasonally adjusted refinance index.
The MBA forecasts that 30-year mortgage rates will reach 4% by the end of 2022.
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