Mortgage rates hit 5.78%, the biggest weekly jump since 1987
Last week’s higher-than-expected inflation data caused a rapid escalation in mortgage rates.
According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average soared to 5.78 percent with an average 0.9 point. (A point is a fee paid to a lender equal to 1 percent of the loan amount. It is in addition to the interest rate.) It was 5.23 percent a week ago and 2.93 percent a year ago. The 55-basis-point increase is the biggest one-week jump since 1987. (A basis point is 0.01 percentage point.) The 30-year fixed average hasn’t been this high since November 2008.
Freddie Mac, the federally chartered mortgage investor, aggregates rates from around 80 lenders across the country to come up with weekly national averages. The survey is based on home purchase mortgages. Rates for refinances may be different. It uses rates for high-quality borrowers with strong credit scores and large down payments. Because of the criteria, these rates are not available to every borrower.
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