Inflation drives mortgage rates to peak not seen since 2014

Average rate for 30-year home loan is now 4.38%

TRD LOS ANGELES /
Feb.February 15, 2018 11:00 AM
(Credit: Max Pixel, Pexels)

Mortgage rates on 30-year, fixed-rate loans climbed to 4.38 percent this week, the highest they have been since April 2014. The rates last week stood at 4.32 percent, according to mortgage buyer Freddie Mac.

The gains are a direct result of the rising yields for Treasury notes, which have been steadily increasing amid fears of an inflation, Bloomberg reported. The yield on the 10-year note reached above 2.94 percent this week, up from 2.78 percent two weeks ago.

Rising mortgages make it increasingly difficult for prospective homebuyers to own a home, especially in expensive states like California and New York.

Monthly payments on a $300,000, 30-year loan are now $1,499, up from $1,394 when the average rate stood at 3.78 percent.

The core consumer price index jumped 0.3 percent from December to January, according to a report from the U.S. Department of Labor. That hike, which was the biggest in a year, drove some analysts and investors to believe the Federal Reserve will increase interest rates again. [Bloomberg] — Natalie Hoberman


Related Articles

arrow_forward_ios
Malibu Real Estate Investments principals Bedros Oruncakiel and Kirkor Suri

Malibu spec mansion lists amid softening luxury market

Chandler Parsons and his property on Stone Canyon Road (Credit: Getty Images)

Durant wants out of Malibu, and now Chandler Parsons is listing his Bel Air mansion

CoreLogic's Andrew LePage and Orange County (Credit: Wikipedia)

SoCal housing market shows signs of life, with a caveat: report

Bridge Housing CEO Cynthia Parker and a rendering of the view from Walnut and Anaheim (Credit: SVA Architects)

Fully affordable complex set to rise in vacant Long Beach lot

Tracy Tutor and her Brentwood home

Tracy Tutor of “Million Dollar Listing ” asking a lot more for Brentwood home

Anton Lessine and 321 South Bristol Avenue, and Behati Prinsloo and Adam Levine with their home (Credit: Getty Images and Zillow)

This week in celeb real estate: Adam Levine unloads $45M home, a Hollywood film producer sells in Brentwood…and more

Anton Lessine and 321 South Bristol Avenue (Credit: Getty Images)

Hollywood producer Anton Lessine sells Brentwood Park mansion for $17M

Andy Reid, the President of MetroStudy

The great SoCal slowdown: Homebuilding drops 18%

arrow_forward_ios