By Jeff Ostrowski
From Bankrate.com
Mortgage rates are climbing fast. The national average rate on a 30-year mortgage rose to 5.91 percent this week, surging from just 2.87 percent in August 2021, according to Bankrate’s national survey of lenders.
The last time mortgage rates rose so swiftly was in 1994. In late 1993, rates were less than 7 percent. By December 1994, they had surged to 9.11 percent, a jump of more than 2 full percentage points in less than 12 months.
Some mortgage watchers say the 2022 run-up in mortgage rates could be even more dramatic than in 1994.
“The Federal Reserve is looking back to that playbook from 1994, which was to raise rates hard and fast,” says Curtis Wood, founder and CEO of Bee, a mortgage app. ”I think at the end of this year, we could easily see mortgage rates around the 7 percent mark.”…