U.S. Mortgage Rates Surge to the Highest Level in More than Two Years

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%.