Mortgage rates in the U.S. jumped to the highest level since January 2020, before the pandemic rocked financial markets.
The average for a 30-year loan was 3.69%, up from 3.55% last week, Freddie Mac said in a statement Thursday. That was the highest since Jan. 2, 2020, when rates averaged 3.72%.
“You’re dealing with two runaway trains: Real estate prices are going crazy and rates are going crazy at the same time. It does not portend well for the first-time homebuyer,” Cohn said. “If you buy, then you’re probably going to have to compromise, either by buying a smaller house or by stepping out of the market and waiting for things to calm down.”
At the current average for a 30-year low, the monthly payment on a $300,000 mortgage would be $1,379. That’s up from $1,209 a little more than a year ago when rates hit a record low of 2.65%.