Mortgage Rates Rise as Federal Reserve Ends Bond-Buying Program
The increase came as the Fed concluded a two-year program buying Treasuries and mortgage bonds to prevent a credit crunch during the pandemic.
March 10, 2022 2 MIN
The increase came as the Fed concluded a two-year program buying Treasuries and mortgage bonds to prevent a credit crunch during the pandemic.
The report sent bond yields, a benchmark for mortgage rates, soaring to highs not seen since November 2019, before the first Covid-19 infection was identified.
The average U.S. rate for a 30-year fixed mortgage jumped by almost a quarter of a percentage point this week, Freddie Mac said.
The strength of the labor market in the closing weeks of 2021 probably points to a Fed rate hike as early as March, Wells Fargo economists said.
Mortgage rates rose this week as stronger-than-expected economic data and concerns about inflation drove bond investors to demand higher yields for their investments.
The average U.S. rate for a 30-year fixed-rate home loan dropped two basis points to 2.88% this week, the third consecutive decline, Freddie Mac said.
Home loan rates are falling in tandem with Treasury yields, which serve as a benchmark for mortgage-bonds, as investors worry about a resurgence of the Covid-19.
The average U.S. rate for a 30-year fixed mortgage rose to 3.02% from 2.93% from last week, Freddie Mac said on Thursday.
The average U.S. rate for a 30-year fixed mortgage fell to 2.93%, marking the ninth week that rates have been at 3% or lower, Freddie Mac said.
The last time the Fed signaled the end of a bond-buying program, mortgage rates jumped more than a percentage point in the span of two months.
