Mortgage rates soar to 4.42% following rate hike According to the Freddie Mac‘s PMMS survey, rates climbed 26 basis points to 4.42%

Didier Malagies • March 24, 2022


The rollercoaster is still climbing. Mortgage rates are approaching 4.5%, a level economists forecasted would not be reached until the tail end of 2022. And there’s good reason to believe mortgage rates will be in the 5% range before too long.


According to data from Freddie Mac‘s PMMS survey, mortgage rates on the traditional 30-year fixed-rate mortgage jumped 26 basis points to 4.42% this week, with increases across all loan types.


“Rising inflation, escalating geopolitical uncertainty and the Federal Reserve’s actions are driving rates higher and weakening consumers’ purchasing power,” Sam Khater, Freddie Mac’s chief economist, said in a statement.


He added: “In short, the rise in mortgage rates, combined with continued house price appreciation, is increasing monthly mortgage payments and quickly affecting homebuyers’ ability to keep up with the market.” 


The Fed made its first move to increase rates last week, raising the benchmark rate by a quarter of a percentage point.


The Fed said there would likely be six more rate hikes in 2022 and three more in 2023, the primary tool the central bank is using to reduce inflation, which climbed to a 40-year high in February, at an annual rate of 7.9%. But last week, Fed Chairman Jerome Powell said he believed inflation was still too high and that the central bank would take ‘necessary steps’ to address it. He noted those rate rises could go from the standard 25 basis point moves to more aggressive 50 basis point increases starting in May. That would push mortgage rates even higher, potentially into the 5% range.


The 30-year-fixed rate rose 26 points from 4.16% for the week ending March 24, according to Freddie Mac. A year ago, the 30-year averaged 3.17%. Freddie Mac assumes borrowers bought 0.8 mortgage points on their loan.


The 15-year fixed-rate mortgage averaged 3.63%, up from 3.39% last week. A year ago, the 15-year fixed-rate mortgage averaged 2.45%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.36% with an average of 0.3 point purchase by borrowers, 17 basis points higher last week. A year ago, the 5-year ARM averaged 2.84%.



The increase in rates in recent months has chilled activity in the mortgage market. According to the Mortgage Bankers Association, mortgage applications this week are down 8.1% from the prior week.

The seasonally adjusted purchase index decreased 1.5% from one week earlier and was 12% lower year-over-year. Meanwhile, refi applications fell 14.3% from the prior week and were down 54.2% from a year ago. 



Start Your Loan with DDA today
Your local Mortgage Broker

Mortgage Broker Largo
See our Reviews

Looking for more details? Listen to our extended podcast! 

Check out our other helpful videos to learn more about credit and residential mortgages.

What about all the disclosures I get during the loan process

By Didier Malagies • July 7, 2025
During the mortgage process, several disclosure documents are provided to help you understand the terms of the loan, your rights, and the costs involved. These disclosures are required by law and are designed to promote transparency and protect you as a borrower. Here’s a breakdown of the key disclosures you'll receive: 1. Loan Estimate (LE) When: Within 3 business days of submitting a loan application. Purpose: Provides a summary of the loan terms, estimated interest rate, monthly payment, closing costs, and other fees. Key sections: Loan terms (rate, type, prepayment penalty, balloon payment) Projected payments (principal, interest, taxes, insurance) Costs at closing (origination charges, services you can/cannot shop for) Why it matters: Lets you compare offers from multiple lenders. 2. Closing Disclosure (CD) When: At least 3 business days before closing. Purpose: Provides final details of the mortgage loan, including actual costs. Key sections: Final loan terms (rate, payments, closing costs) Cash to close (how much you need to bring to closing) A detailed breakdown of costs and payments over time Why it matters: Helps you confirm everything is accurate before you close. 3. Mortgage Servicing Disclosure Statement When: Within 3 business days of application. Purpose: Explains whether your loan might be sold or transferred to another company for servicing. Why it matters: Tells you who will manage your payments and account. 4. Affiliated Business Arrangement (AfBA) Disclosure When: At the time of referral to an affiliated business (e.g., title company). Purpose: Discloses any relationships between the lender and other service providers and explains you’re not required to use them. Why it matters: Ensures you know if there’s a potential conflict of interest. 5. Home Loan Toolkit (for purchase loans) When: Within 3 business days of application. Purpose: A consumer-friendly booklet from the CFPB that explains the mortgage process, costs, and how to shop for a loan. Why it matters: Helps first-time buyers understand the steps and choices. 6. Right to Receive a Copy of Appraisal When: Within 3 business days of application. Purpose: Notifies you that you can get a copy of the appraisal at no additional cost. Why it matters: Gives you insight into the value of the home you’re buying or refinancing. 7. Initial Escrow Disclosure When: At or within 45 days of closing. Purpose: Details amounts to be collected in escrow for taxes and insurance. Why it matters: Shows how your monthly mortgage payment is allocated. 8. Notice of Right to Rescind (for refinances only) When: At closing (for primary residence refinances). Purpose: Gives you 3 business days to cancel the refinance loan. Why it matters: Protects you from making a rushed decision. tune in and learn at https://www.ddamortgage.com/blog Didier Malagies nmls#212566 dda mortgage nmls#324329

Buying a new home and keeping your existing home

By Didier Malagies • June 30, 2025
Buying a new home while keeping your current one can be a smart investment strategy—but it does come with financial challenges, especially when it comes to managing debt. Here are ways you can offset or manage the debt to make this dual-home scenario work: 🔑 1. Rent Out Your Current Home Offset: Use rental income to cover the mortgage on your existing home. Pros: Helps cover the mortgage or even generate cash flow. Note: Lenders often count a portion of projected rental income toward your debt-to-income (DTI) ratio. 💰 2. Use Equity from Your Current Home Offset: Take out a cash-out refinance, HELOC, or home equity loan to fund the down payment or reduce new home debt. Pro: Lower the mortgage balance on the new home or avoid PMI. Con: Increases debt on the existing property and monthly obligations. 📉 3. Refinance to Lower Monthly Payments Offset: Refinance either or both homes to reduce interest rates and monthly payments. Goal: Free up cash to manage both mortgages more easily. 💼 4. Increase Your Income or Reduce Expenses Offset: Boost your DTI ratio eligibility or free up monthly cash. Ways to Increase Income: Side gig, bonuses, rental income, etc. Ways to Cut Costs: Pay down other debts, reduce discretionary spending. 🏘️ 5. House Hack Offset: Live in part of one home (e.g., basement, ADU) and rent the other part out. Useful If: You’re open to creative living arrangements to reduce out-of-pocket costs. 🧾 6. Tax Deductions Offset: If one home is rented, you can deduct expenses like mortgage interest, taxes, repairs, and depreciation. Talk to a CPA to maximize tax benefits. 📊 7. Consider a Bridge Loan (Temporary Fix) Offset: Use a bridge loan to cover the gap between buying a new home and selling (or refinancing) the old one later. Note: Short-term, higher-interest debt—use with a clear exit strategy. Example Scenario: You keep your current home and rent it out for $2,000/month. Your mortgage on that property is $1,500/month. The $500/month profit helps cover your new home's mortgage, easing your debt load and possibly helping with mortgage approval. tune in and learn at https://www.ddamortgage.com/blog Didier Malagies nmls#212566 dda mortgage nmls#324329

How does a specific power of attorney work for a mortgage closing

By Didier Malagies • June 23, 2025
A Specific Power of Attorney (POA) for a mortgage closing is a legal document that allows one person (the principal) to authorize another person (the agent or attorney-in-fact) to act on their behalf only for the purpose of completing a mortgage transaction—typically when the principal cannot be physically present at the closing. Key Points of How It Works: ✅ Purpose-Specific Authorization The document limits the agent’s authority strictly to the mortgage transaction, such as signing loan documents, the note, deed of trust, and other closing forms. It does not grant broad financial powers—only what’s specifically listed. ✅ Common Uses When the borrower is: Out of the country or state In the military Hospitalized or otherwise unavailable on closing day ✅ Lender and Title Company Approval Required The lender must approve the POA in advance. Some lenders are strict and may require the POA to be: Dated close to the closing date Notarized and possibly recorded The title company must also approve the document to ensure it's valid and complies with local regulations. ✅ Execution Requirements It must: Clearly describe the property address State the exact powers being granted (e.g., “to execute all documents required to close on the mortgage loan for [property address]”) Be notarized, and in some states, also witnessed Sometimes be recorded with the county clerk if it’s used to sign a deed or deed of trust ✅ Expiration Some are written to expire after a short period (e.g., 30 or 60 days), or immediately after closing. ✅ Revocation The principal can revoke it at any time before the closing by notifying the agent and any third parties relying on it (like the lender or title company) in writing. Example Scenario Suppose Jane is buying a home but will be overseas on the closing date. She signs a Specific POA authorizing her sister to sign all documents necessary to complete the mortgage transaction for the home at 123 Main St. The lender and title company review and approve the POA ahead of time. On the day of closing, Jane's sister signs the documents on her behalf, using the POA. tune in and learn at https://www.ddamortgage.com/blog Didier Malagies nmls#212566 dda mortgage nmls#324329 
Show More