Home buyers this spring are facing a double whammy of rising home prices and mortgage rates. The 30-year fixed-rate mortgage rose to 4.72% this week, from 3.13% when compared to a year ago, Freddie Mac reports.

As such, home prices are expected to rise 5.1% in 2022, according to NAR’s projections.

Despite recent job gains, which tend to propel the housing market forward, many uncertainties in the economy and rising prices could hamper home sales moving forward. Inflation is running high at 7.9%. Mortgage rates are expected to rise further as the Federal Reserve moves to tame its short-term interest rates.

Rates have jumped from 3.76% to 4.67% in just March alone, significantly increasing the borrowing costs for buyers, Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS®, wrote for the association’s blog.

A growing number of homeowners are viewing reports about the lean housing inventory and fierce buyer competition and may increasingly be deciding to stay put and renovate their current home instead.

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Elevated inflation and the Federal Reserve’s monetary tightening policy drove the latest leap in mortgage rates this week. Since the beginning of this year, mortgage rates have jumped by 1.2%. The typical home buyer would need to spend $250 more every month to be able to purchase a home, Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, writes on the association’s blog.

As mortgage rates rise, levels below 4% for the most popular 30-year fixed-rate mortgage are likely to remain in the rearview mirror. The 30-year fixed-rate mortgage averaged 4.16% this week, Freddie Mac reports.

Hispanic Americans have historically been underrepresented as homeowners, but that could soon change. If predictions hold true, longstanding homeownership gaps may be closing.

Fifty-eight percent of Hispanic home shoppers are first-time buyers, significantly higher than the rest of the U.S. population (34%). A new survey conducted by realtor.com® and the National Association for Hispanic Real Estate Professionals found an increasing presence of Hispanics in the housing market, and the organizations predict that number will continue to grow.

Following two weeks of declines, mortgage rates edged up, and economists say that consumers should expect further increases over the coming weeks.

The Federal Reserve will likely raise its short-term interest rates at its meeting next week. While the Fed’s benchmark rates do not have a direct effect on mortgage rates, they do often influence them and likely will lead to an increase, the National Association of REALTORS® notes on its Economists’ Outlook blog.