Mortgage Rates For 30-year Homes Hit 5% For The First Time In Over A Decade

IRVINE, Calif. (KABC) – For the first time in more than a decade, 30-year home mortgage rates hit 5%.

Kent Mortgage Corporation CEO and founder Roger Williamson said in a Zoom interview with Eyewitness News that he expects this trend to continue.

“If we don’t see an end to this inflationary streak, we’re going to have it for a while. Inflation is a killer for interest rates. We will see higher interest rates. You will be in your fifties. They’ll potentially go up to six, six and a half, I’m guessing in the sixes,” Williamson said.

According to Freddie Mac, interest rates are rising at the fastest rate since 1994. Just last week they were at 4.72%.

Williamson said these increases won’t have a big impact on the shoppers who come to his office.

“Basically, the reason is that buyers today have a really solid income, a decent down payment, decent credit, and they’re first-time buyers. The majority of our buyers are first-time buyers,” he added.

This is a trend Williamson has seen at least in the last year — first-time homebuyers are eating inventory.

As demand continues amid low supply, he expects the housing market — in California at least — to remain hot and mortgage loan rates not to come down anytime soon.

“In four years, in three years economic policy will change, the Fed will manage to bring inflation down over time and we’ll get back under four. Probably in three to four years, and that’s the expectation I have,” Williamson said.

The average interest rate on 15-year fixed-rate mortgages also rose to 4.17% from 3.91% last week.