U.S. 30-Year mortgage rates rise to highest since spring 2020

BY Reuters | AGENCY | 01/06/22 12:47 PM EST

NEW YORK, Jan 6 (Reuters) - The average rate for a 30-year fixed rate mortgage in the U.S. rose to 3.22% as of the week of Jan. 6, up from 3.11% the week prior, according to housing finance giant Freddie Mac.

That is the highest average rate for this type of mortgage since May 2020, and it is more than half a percent higher than January 2021, Freddie Mac's Chief Economist Sam Khater said in a statement. (Reporting by Elizabeth Dilts Marshall)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article