US mortgage rates skyrocket to over three-year high

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The 15-year fixed-rate mortgage averaged 3.83%, up from 3.63% last week. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.50%, up from 3.36% the week before.

“The flatness of the treasury curve should have an impact on new adjustable-rate mortgage (ARM) offerings relative to 15-year and 30-year fixed mortgage rates,” Robert Heck, vice president of mortgage at Morty, told MPA in an email. “This being said, ARMs have been slower to move relative to the recent uptick in rates, which is largely driven by the bank backing of these products and could cause them to be a strong option in the short term.”

“Looking ahead to the spring market, the combination of rising interest rates, continued low supply and rising inflation could slow the housing market from the heights it’s seen in recent months, even if prices continue to rise,” Heck added.