Mortgage rate soars closer to 5% in its second huge jump this week

The rate for the most common kind of mortgage went up again.

The average rate on the 30-year fixed mortgage went up 24 basis points on Friday. It is now higher than it was a year ago.

That is the second time this week, and it puts this week on par with the worst week of the taper tantrum.

The rate jumped from March 18 to Tuesday. Demand for mortgage and refinancing loans has been affected by the rise in rates.

The rate went up as the yield on the U.S. 10-year Treasury went up. Mortgage rates don't follow that yield completely. Demand for mortgage-backed bonds influences mortgage rates. The Federal Reserve is raising interest rates and scaling back its holdings.

It couldn't come at a worse time, as the spring housing market gets underway. Potential buyers are facing high prices and tight supply. The median mortgage payment is now more than 20% higher than it was a year ago.

The affordability issues are worsened by inflation on everything else in the budget. More potential buyers are unable to put aside money for a down payment because rents are surging higher. Some buyers will no longer qualify for a mortgage if rates rise. The amount of debt a person can take on has been increased by the lender.

The economists are revising their sales figures for the year. The chief economist for the National Association of Realtors said Tuesday that he expects the rate to stay at 4% this year, after previously predicting it would stay at 4%.

According to the official predictions, sales will fall 3% in 2022, but according to the new predictions, they will fall 6% to 8%. The forecast hasn't been updated by NAR.