U.S. mortgage rates have increased for six straight weeks, a sign the historic low for mortgage rates is becoming a thing of the past.
The rise in mortgage rates comes as the demand for housing continues to hit all-time highs, as buyers outnumber sellers, and homes selling above listing price skyrocket.
Since January, mortgage rates have increased half a percentage point, according to a March 25 Freddie Mac report, which found the average 30-year fixed-rate mortgage is 3.17%, the highest level since June and up from 3.09% a week prior. Similarly, a 15-year fixed-rate mortgage is 2.45%, up from 2.40% a week earlier.
At the end of 2020, a 30-year fixed-rate mortgage was 2.67%, and a 15-year fixed-rate mortgage was 2.17%.
Redfin recently reported mortgage applications increased 3% week over week for the week ending March 19. They were up 26% from a year earlier.
Rising mortgage rates are contributing to a decline in refinancings. Refinances have declined for seven consecutive weeks to 60.9%, their lowest level since July, according to Bloomberg, which reported the days of cash-out financing may also be numbered.