The rate climbed to 5.02%, earlier this week, according to Mortgage News Daily, marking the first time it has crossed that threshold since 2011, except for two days in 2018.
That, he said, will mean a higher monthly payment for borrowers.
“The bottom line is that mortgage rates are on course to surpass 5%, a level not seen since February 2011, when the typical home in the U.S.
“We entered 2022 on strong footing, with rising job numbers and wage growth driving demand for homes,” Ratiu said.
“The increase in the cost of financing a home is outgunning the 8% yearly rate of inflation, the 15% rise in home prices, and the 17% advance in rents,” he said.
Increasing rates are likely to mean home buyers postponing or taking a break from housing in the next few months, Ratiu said.