Also, with inflation at a 40-year high, home buyers are finding they may need to adjust their budget to buy this spring. “As Americans contend with historically high inflation, the combination of rising mortgage rates, elevated home prices, and tight inventory are making the pursuit of homeownership the most expensive in a generation,” writes Sam Khater, Freddie Mac’s chief economist.

NAR predicts that rising borrowing costs will price out about 16 million households from the housing market this year. NAR has forecast home sales activity to drop about 10% in 2022.

Freddie Mac reports the following national averages with mortgage rates for the week ending April 14:

*30-year fixed-rate mortgages: averaged 5%, with an average 0.8 point, rising from last week’s 4.72% average. A year ago, they averaged 3.04%.

*15-year fixed-rate mortgages: averaged 4.17%, with an average 0.9 point, rising from last week’s 3.91% average. A year ago, they averaged 2.35%.

Source: Freddie Mac and “Instant Reaction: Mortgage Rates, April 14, 2022,” National Association of REALTORS® Economists’ Outlook blog