Average long-term US mortgage rate jumps to 6.5% this week

By M ATT O TT Associated Press

The Average

long-term U.S. mortgage rate jumped this week to its highest level since November, more grim news for a housing market that’s been in decline for a year.

Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate rose to 6.5% from 6.32% last week. The average rate a year ago was 3.89%.

The average long-term rate reached a two-decade high of 7.08% in the fall as the Federal Reserve continued to raise its key lending rate in a bid to cool the economy and quash persistent, four-decade high inflation.

At its first meeting of 2023 earlier this month, the Fed raised its benchmark lending rate by another 25 basis points, its eighth increase in less than a year. That pushed the central bank’s key rate to a range of 4.5% to 4.75%, its highest level in 15 years.

Fed Chair Jerome Powell noted at the time that some measures of inflation have eased, but appeared to suggest that he foresees two additional quarter-point rate hikes this year. Minutes from that meeting released Wednesday mostly corroborated that view, but a series of strong economic reports in recent weeks has some analysts forecasting more than two rate increases this year, to a range of 5.25% to 5.5%.

While the Fed’s rate hikes do impact borrowing rates across the board for businesses and families, rates on 30-year mortgages usually track the moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans. Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Federal Reserve does with interest rates can also influence the cost of borrowing for a home.

The big rise in mortgage rates during the past year has battered the housing market, with sales of existing homes falling for 12 straight months to the slowest pace in more than a dozen years. January’s sales cratered by nearly 37% from a year earlier, the National Association of Realtors reported on Tuesday.

For all of 2022, NAR reported last month that existing U.S. home sales fell 17.8% from 2021, the weakest year for home sales since 2014 and the biggest annual decline since the housing crisis began in 2008.

Higher rates can add hundreds of a dollars a month in costs for homebuyers, on top of already high home prices.

Deeds

AGAWAM

Anthony E. Heim and Olivia Heim to Mitchell J. Sparrow and Denise Spina, 70 Lealand Ave., $399,900.

Anthony Surrette and Nicole E. Apostle to Carrie Ann Pouliot and Brett A. Raymond, 103 Lealand Ave., $308,000.

Bernard R. Tatro Jr., to Betty Bonavita and Laura Bonavita, 12b Castle Hill Road, $300,000.

Betty L. Bonavita, Laura M. Bonavita-Suarez and Jon Brett Suarez to Gregg A. Richers and Nida Richers, 60 Dogwood Lane, Unit 60, $265,000. Norman A. Pelley to Timofey Pchelka, Mark Drive, Lot 1, $70,000.

Richard E. Strawn and Yvonne

M. Favreau to Anna Meassick, 24 Horsham Place, $285,000. Stage Harbor Realty LLC, to 40 Bowles Road LLC, Andrew H. Mirkin, trustee, and Andrew H. Mirkin Revocable Indenture Of Trust Of, trustee of, 40 Bowles Road, $1,250,000.

Telman K. Bilalov and Zarina Bilalova to Jonathan Alicea and Maria Silva, 955 River Road, $460,000.

Wendy F. Preston and Wendy E. Preston to Timothy R. Roy and Alyssa Fondakowski, 17 Merrell Drive, $265,000.

Amherst

Matthew Dufresne and Elizabeth Dufresne to Matthew S. Goldberg and Larissa R. Chernock, 30 Dana Place and 0 Dana Place, $1,500,000.

Jill C. Villatoro, personal representative, and Kay F. Butler, estate, to USA Housing & Urban Development, 7 Bedford Court, $142,825.

Belchertown

J. N. Duquette & Son Construction Inc., to Richard C. Royce Jr., and Ann V. Royce, 25 Sycamore Circle, $561,625.

Chester

Joyce Crawford, Joyce H. Crawford and Matthew Paul Crawford to Robert J. Pierce and Heidi J. Pierce, 72 Maynard Hill Road, $40,000.

Chicopee

Christine Ann Larson to Nelson Delgado, 585 Sheridan St., Unit 2, $240,000.

Michael A. Ruyffelaert and Paula N. Ruyffelaert to Aida Done Tejada, 22-24 Monroe St., $390,000.

Ramona Mejia Romero to La Cunca LLC, 872 Meadow St., $400,000.

Susana Navarro and Jesus F. Navarro to Karen O’Connor, 44B Colonial Circle, $177,500.

East Longmeadow

Nilda Doris Wotton to Tyler Stuhr and Elizabeth Amoroso, 331 Elm St., $343,650.

Tho Le to David Robbins and Samuel N. Robbins, 12 Speight Arden, $271,000.

Easthampton

Chris C. Murphy and Jennifer F. Silver to Chris C. Murphy and Jennifer F. Silver, 26 Hisgen Ave., $100.

Scott N. Phaneuf, Scott Phaneuf, Donna M. Helems-Phaneuf and Donna Phaneuf to Donna M. Helems-Phaneuf, trustee, and Phaneuf Family 2023 Irrevocable Trust, 0 Water Street, $100.

Scott N. Phaneuf, Scott Phaneuf, Donna M. Helems-Phaneuf and Donna Phaneuf to Donna M. Helems-Phaneuf, trustee, and Phaneuf Family 2023 Irrevocable Trust, 15-25 Maple St., $100.

Joseph P. Yarasavych and Christina T. Yarasavych to Paul-Michael

McKenna, trustee, and Yarasavych Irrevocable Trust, 116 Cottage St., and 5 Orchard St., $100.

Jessie R. Casinghino and Melissa A. Casinghino to Margaret Mary O’Neill, 61 West St., $360,000. Michael J. Doherty, Henry J. Doherty and Quinn J. Doherty to Stephen C. Robinson, 6 Hill Ave., $250,000.

Alfred J. Albano Jr., commissioner, and Timothy Polonis to Veteran Stan LLC, 23 Mt. Tom Ave., $170,000.

Gill

Michael R. Duprey to Christopher M. Duprey, 25 Riverview Drive. $120,000.

Hadley

John T. Sibley, Christina S. Sibley and Christina S. Monet to Roxanne Schneider, 3 Birch Meadow Drive, $672,014.

Hatfield

Mill River Ventures Inc., to Prospect Court LLC, 2-4 Prospect Court, $380,000.

Scott N. Phaneuf, Scott Phaneuf, Donna M. Helems-Phaneuf and Donna Phaneuf to Donna M. Helems-Phaneuf, trustee, and Phaneuf Family 2023 Irrevocable Trust, 80 Prospect St., $100.

Scott N. Phaneuf and Donna Helems-Phaneuf to Donna M. Helems-Phaneuf, trustee, and Phaneuf Family 2023 Irrevocable Trust, 84 Prospect St., $100.

Holland

Wittig Properties LLC, to David Wittig, 6 Vinton Road, $100.

Holyoke

Alyssa R. Sampson, representative, Sabrina A. Sampson, SEE DEEDS, PAGE F8

$165,000. Jumbo loans are based on loan amounts of $548.250. Points quoted include discount and/or origination. Lock Days: 30-60. Annual percentage rates (APRs) are based on fully indexed rates for adjustable rate mortgages (ARMs). The APR on your specific loan may differ from the sample used. Fees reflect charges relative to the APR. If your down payment is less than 20% of the home’s value, you will be subject to private mortgage insurance, or PMI. FHA mortgages include both UFMIP and MIP fees based on loan amount of $165,000