Nebraska Mortgage Rates | January 28 2022

January 28, 2022
Michael Petrovich
Uncategorized

Weekly Rate Update

Rates fluctuate every day and are based on several factors. For an exact rate quote, submit your request HERE for a free evaluation.

PMMS 1/27/2022

The average 30-year-fixed rate mortgage declined one basis point from the week prior to 3.55% during the week ending Jan. 27. Most economists believe rates will continue to climb in the weeks and months ahead.

“Following a month-long rise, mortgage rates effectively stayed flat this week,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “We do expect rates to continue to increase but at a more gradual pace.”

The rise in mortgage rates moved in concert with the 10-year Treasury yield, which reached 1.85% yesterday, compared to 1.83% on the previous Wednesday.

The expectation of higher mortgage rates is based on the fact that the Federal Reserve will raise interest rates. On Wednesday, the central bank said it will happen “soon,” though an exact timetable has not yet been disclosed.

“With inflation well above 2% and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate,” the Federal Open Markets Committee said in a statement.

The FOMC decided to keep the target range for the federal funds rate at 0 to 0.25%, but will likely take action on rates in early March.

MBA 1/26/2022

Mortgage applications fell 7.1% from the previous week, following an increase in rates to the highest level since the pandemic onset. The seasonally adjusted Refinance Index decreased 12.6% in the same period, with applications falling for the fourth straight week. Meanwhile, the Purchase Index declined 1.8%.

According to Joel Kan, MBA’s associate vice president of economic and industry forecasting, all mortgage rates continue to climb, but the 30-year fixed rate rose for the fifth consecutive week to its highest level since March 2020.

The trade group estimates that the average contract 30-year fixed-rate mortgage for conforming loans ($647,200 or less) increased from 3.64% to 3.72%. For jumbo mortgage loans (greater than $647,200), rates went to 3.56% from 3.54% the week prior.

“After almost two years of lower rates, there are not many borrowers left who have an incentive to refinance. Of those who are still in the market for a refinance, these higher rates are proving much less attractive to them,” Kan said in a statement.

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