In the first full week of 2022, both the 30-year and 15-year fixed rate mortgages increased 11 basis points to 3.35% and 2.70% respectively.
Treasury yields soared at the beginning of the year once the U.S. rolling seven-day average for COVID cases surpassed 400,000. More specifically, the yield on the 10-year Treasury note increased 13.7 basis points, which pushed mortgage rates up as well. Along with large movements in yields, the new year also brought new housing predictions. Experts in the industry are optimistic, forecasting a jump in new home sales to 922,000 sales. Housing starts, however, may still be impacted by supply and worker shortages. The NAHB believes they will decline to 1.55 million while Fannie Mae believes housing starts will hold steady at 1.6 million