Mortgage rates have been on the rise since the Federal Reserve began mulling a rate hike at the beginning of the year, jumping to their highest levels in nearly three years even before the announcement of the rate hike.
On Thursday, Freddie Mac released its latest 30-year mortgage rate at 4.67%, a new high since December 2018.
At the beginning of this year, this number was remained at 3.22%. That means mortgage rates have risen 145 basis points throughout the quarter and have reached close to 5% for the first time in the recent four years.
So far, the Federal Reserve has actually raised the interest rate only once, which is equivalent to six times of interest rate hikes calculated on a 25 basis points one time.
Affected by high inflation, the Fed plans to raise rates at every meeting during this year, while the aggressive route of rate hikes and soaring loan rates almost peer.
Faced with rising mortgage rates that are likely to continue, many of you who are applying for a mortgage may start to wait or expect to take the plunge until the interest rates hit the cyclical low point.
In fact, as total mortgage applications are down 60% compared to a year ago, according to the Mortgage Bankers Association.