Housing Market Research Brief
Higher Mortgage Rates Create Favorable
Reverberations for Commercial Real Estate
Mortgage rates surge to a pandemic-era high. The 30-year mortgage interest rate is moving up, with the pace of increase accelerating from the mild bump posted in late 2021. The rate has climbed more than 40 basis points during the past few weeks to reach the mid-3 percent range, now once again in line with the late 2019 figure. Upward movement is likely to continue during the coming months amid indications that the Federal Reserve will attempt to rein in record-level inflation. A higher cost of borrowing is already impacting the decisions of would-be homebuyers. The four-week moving average of mortgage purchase applications has dropped 12.6 percent relative to the year-ago volume.