By Manuel Gutierrez, Consulting Economist to NKBA

The 30-year fixed rate, at 5.11 percent, is two full points above where it stood at the beginning of the year.

• The 15-year fixed rate and adjustable-rate mortgages are showing similar increases.
• The pace of interest rate gains are picking up, fueling consumer expectations of higher near-term inflation which will continue to exert upward pressure on mortgage rates.
• Rising rates are impacting mortgage borrowing. According to the Mortgage Bankers Association total applications decreased for the week ending April 15th by 5 percent over the previous week.
• Applications for refinancing loans suffered an even bigger drop, falling by 8 percent.
• The Federal Reserve Bank is suggesting it will increase the Federal Funds Rate, which will establish a floor for all types of interest rates, such as credit cards and mortgages.
• Total mortgage debt is at $11.7 trillion, a 7.5. percent increase over the previous year, the highest annual jump since 2006.

“Since January, mortgage rates have increased two full percentage points, from 3.11 percent to 5.11 percent.”