The 30-year fixed mortgage rate has reached the 5% mark, hitting its highest level in more than 10 years as inflation continues to soar.
Freddie Mac’s weekly primary mortgage market survey showed that the average 30-year fixed-rate mortgage jumped to 5% as of April 14 from 4.17% the week prior. A year ago, the benchmark mortgage rate was just 3.04%.
“This week, mortgage rates averaged 5% for the first time in over a decade,” said Sam Khater, Freddie Mac’s Chief Economist. “As Americans contend with historically high inflation, the combination of rising mortgage rates, elevated home prices and tight inventory are making the pursuit of homeownership the most expensive in a generation.”