Mortgage rates have hit a 22-year high as demand for home loans drops. This is due to a combination of factors, including the coronavirus pandemic, economic uncertainty, and a lack of available housing.
The average rate for a 30-year fixed-rate mortgage was 3.45% in April, according to Freddie Mac. This is the highest rate since 1998, when it was 3.47%. The rate has been steadily increasing since the start of the year, when it was 3.29%.
The increase in mortgage rates is due to a number of factors. The coronavirus pandemic has caused economic uncertainty, which has led to a decrease in demand for home loans. This has caused lenders to raise rates in order to make up for the decreased demand.
In addition, there is a lack of available housing. This is due to a combination of factors, including a decrease in new construction, an increase in home prices, and a decrease in the number of homes for sale. This has caused buyers to compete for the limited number of homes, driving up prices and making it more difficult for buyers to qualify for a loan.
The increase in mortgage rates is also due to the Federal Reserve’s decision to keep interest rates low. This has caused lenders to raise their rates in order to make up for the difference.
The increase in mortgage rates is likely to continue in the near future. This is due to the continued economic uncertainty caused by the coronavirus pandemic, as well as the lack of available housing.
For those looking to buy a home, it is important to shop around for the best rate. It is also important to consider other factors, such as the size of the down payment and the length of the loan.
Mortgage rates have hit a 22-year high, but there are still ways to get a good deal. By shopping around and considering other factors, buyers can still find a good rate on a home loan.
