The average interest rate on the most popular U.S. home loan jumped over 5% last week, the highest level since November 2018.
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The average contract rate on a 30-year fixed-rate mortgage rose to 5.13% in the week ended April 8 from 4.90% a prior week. It is up more than 1.5 percentage points since the start of the year.
Fed policymakers now expect a series of swift rate hikes until the end of this year to control inflation after raising the benchmark overnight lending rate last month for the first time in three years.
The MBA stated its Purchase Composite Index, a measure of mortgage loan applications to buy single-family homes, rose 1.4% on a seasonally adjusted basis to 261.8 as the refinance index dropped 4.9%.
Mortgage originations are expected to fall 35.5% in 2022 from a year ago to $2.58 trillion. Purchase originations are expected to rise and are projected to grow by 4% from last year to a record $1.72 trillion in 2022.