Mortgage rates shoot up to highest level since Great Recession

The 15-year rate climbed 18 basis points week over week to a 5.16% average. A year ago at this time, the 15-year fixed-rate mortgage was 2.19%. The five-year Treasury-indexed hybrid adjustable-rate mortgage increased from 4.51% to 4.64%.

Andy Walden, vice president of enterprise research at Black Knight, pointed out the implications of the rate increases for both affordability and (what’s left of) refinance incentive.

“With 30-year rates at 5.89%, home affordability levels have fallen to a new 35-year low,” Walden said. “Given the large role affordability challenges appear to be playing in shifting housing market dynamics, the recent pullback in home prices is likely to continue.”

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Khater disagrees, citing recent studies that show a bright side to the higher-rate environment.