May 5, 2022 - Economy

Mortgage rates hit 13-year high as inflation rages

U.S. average 30-year fixed mortgage rate
Data: FRED; Chart: Baidi Wang/Axios

Mortgage rates are escalating quickly, reaching their highest point since the Great Recession as the Fed acts to tamp down inflation.

By the numbers: The average 30-year fixed mortgage rate is 5.27%, according to Freddie Mac data cited by the St. Louis Fed Thursday.

  • That's the highest rate since June 2009, when interest rates were plunging in the aftermath of the financial crisis.
  • “Mortgage rates have jumped more than 2 percentage points thus far in 2022 but until we see sustained evidence of easing inflation pressures, the risk is to the upside," wrote Bankrate chief financial analyst Greg McBride.

What we're watching: With the Fed's action and future plans to raise interest rates, it's almost inevitable that rates will climb higher, making it more expensive to borrow to buy a home and to refinance existing mortgages.

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