30-year home mortgage rates hit 5% for the 1st time in over a decade

ByJessica De Nova KABC logo
Friday, April 15, 2022
30-year mortgage loans see highest rate in more than a decade
Home mortgage rates just hit 5% for the first time in more than a decade. That means the monthly cost of buying a typical home has surged by more than a third over the past year.

IRVINE, Calif. -- For the first time in more than a decade, 30-year home mortgage loan rates hit 5%.

Roger Williamson, the CEO and founder of Kent Mortgage Corporation, Roger Williamson, said in a Zoom interview with Eyewitness News that he expects this trend to continue.

"If we don't see an end to this inflationary period, we're gonna have it for a while. Inflation is a killer to interest rates. We're going to see higher rates. They're going to go into the fives. They're gonna possibly go as high as six, six-and-a-half, I expect in the sixes," Williamson said.

According to Freddie Mac, rates are increasing at the fastest pace since 1994. Just last week, they were at 4.72%.

Williamson said these hikes aren't having much of an effect on the buyers coming to his office.

"The reason, basically, is that the buyers today have really solid income, a good enough down payment, good enough credit and they are first-time buyers. The majority of our buyers are first-time buyers," he added.

This is a trend Williamson has seen for at least the last year- first-time home buyers eating inventory.

As demand continues with low supply, he expects the housing market to remain hot - at least in California - with mortgage loan rates not dropping any time soon.

"Four years from now, three years from now, the economic policies will change, the fed will succeed in bringing down inflation over time and we'll get back down under four again. Probably in three to four years, and that's the expectation that I have," Williamson said.

The average rate on 15-year fixed-rate mortgages also went up to 4.17% from 3.91% last week.