Mortgage Rates Jump to Their Highest Point In 13 Years

May 5, 2022 By: Gem Home Loans

As a few thoughts to compliment the article; all expectations are that rates will continue to move up through the foreseeable future.  The pressures from inflation, 10-year T-bill, war in Ukraine and more would all be indicators to continued increases.  Adjustable-rate mortgages (ARM’s) are making up a growing percentage of new mortgage originations but it is important to note that with the inverted yield curve the difference between a fixed rate and an ARM is not all that great and each individual would have to make their own evaluation of, “is the savings enough” to warrant the risk.

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Article: Mortgage Rates Jump to Their Highest Point In 13 Years

Source: Time.com

Article Highlights

• Mortgage rates rose this week, erasing last week’s drop and hitting the highest level since 2009, at 5.38%.
• The Federal Reserve, meanwhile, announced its latest steps to rein in inflation, including hiking its benchmark short-term interest rate by 50 basis points.
• The Fed’s hike doesn’t directly affect mortgage rates, and experts say plans by the central bank to unwind its purchases of mortgage-backed securities have likely already been factored into rates.
• Homebuyers are increasingly turning to adjustable-rate mortgages (ARM) and other strategies to combat rising rates, although interest rates still aren’t high from a decades-long perspective.

Read Full Article on Time.com