East Arizona News

A report by a consumer financial services company based in New York City found that the current rate for a 30-year fixed mortgage in Arizona was 4.93% as of April 7. Nationwide, the average number for the same mortgage was 4.72% as of April 7. The continuing steady rise has pushed home-loan rates within sight of 5% for the first time in four years, as reported by the Wall Street Journal (WSJ).

Bankrate.com, "an independent, advertising-supported publisher and comparison service," reported on April 7 that the current rates in Arizona were 4.08% for a 15-year fixed refinance, and 4.00% for a 5/1 adjustable-rate mortgage, the website said.

The national average 30-year mortgage rate of 4.67% on March 31 was at “its highest level since December 2018,” Charlie Bilello, founder and CEO of Compound Capital Advisors, said on Twitter.

“Last year, it hit an all-time low of 2.65%," Bilello said. "The 0.82% increase in mortgage rates over the last 3 weeks is the largest 3-week spike we've seen since May 1987."

Freddie Mac’s Primary Mortgage Market Survey reported the 30-year, fixed-rate mortgage was at 4.42% on March 24. A week before that, the rate was 4.16%. On Jan. 6, the rate was 3.22%. 

For its rate survey, Freddie Mac looks at rates offered for the week ending every Thursday, according to money.com. The average rate represents the approximate rate a borrower with strong credit and a 20% down payment can expect to see when applying for a mortgage now. "Borrowers with lower credit scores will generally be offered higher rates," the website said.

"It's going to take a pretty healthy increase in rates to moderate the demand [in home buying activity]," Phil Shoemaker, president of originations at Home Point Financial Corporation, a Michigan-based mortgage lender, told the WSJ.

Michael Becker, who works for Austin, Texas-based Keller Williams Realty, Inc., referenced the WSJ article on Facebook.

"Goes on to say, however, that purchase applications are still rising because of the spring market. I think after the spring market and if rates go towards 6%, we will see a correction the second half of the year," Becker said.

The Mortgage Bankers Association (MBA) reported on April 6 that mortgage applications decreased 6.3% from one week earlier. This data came from the association’s Weekly Mortgage Applications Survey for the week ending April 1.

"Mortgage application volume continues to decline due to rapidly rising mortgage rates, as financial markets expect significantly tighter monetary policy in the coming months," Joel Kan, MBA's associate vice president of industry surveys and forecasts, said in a press release.

With inflation causing sky-high housing prices, homeownership is being pushed out of reach for many Americans. The WSJ reported that the median sales price of an existing home rose 15% in February, based on numbers from a year earlier.