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Mortgage rates reach highest since August 2007

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Mortgage rates rose again this week, with 30-year fixed rates averaging 6.29%, up from 6.02% last week, according to Freddie Mac. At this point a year ago, the 30-year FRM averaged 2.88%. This is his highest level since August 2007, a year ago when the housing market crash triggered the Great Recession.

The average interest rate for a 15-year fixed-rate mortgage was 5.44%. Last week it averaged 5.21%. At this point a year ago, the 15-year FRM was 2.15%.

The average 5-year Treasury index hybrid adjustable rate mortgage (ARM) rate was 4.97%. Last week’s average was 4.93%. At this point a year ago, the 5-year ARM was 2.43%.

Homes under construction at the Norton Commons subdivision in Louisville, Kentucky, USA, Friday, July 1, 2022. Photographer: Luke Sharrett/Bloomberg via Getty Images (Luke Charlett/Bloomberg/Getty Images via Getty Images)

“The housing market continues to face headwinds, with mortgage rates rising again this week after 10-year Treasury yields jumped to their highest level since 2011,” said Sam Cater, chief economist at Freddie Mac. there is

“Home prices are softening and home sales are declining, impacted by rising interest rates, but the number of homes for sale is well below normal levels,” Sam said. continued.

Existing home sales plunge to lowest level since 2020 in August

Soaring mortgage interest rate After more than doubling in 2022, it threatens to sideline more homebuyers.

Wednesday, Federal Reserve Board Raised the benchmark borrowing rate by a further three-quarters of a percentage point This is the fifth time the index has risen this year, and the third straight year it has risen by 0.75 points.

Perhaps nowhere else is the impact of the Fed’s actions most obvious. Residential sector. existing home sales Decreased for 7 consecutive months The cost of borrowing money is rising, making housing out of reach for more people.

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The National Association of Realtors said Wednesday that existing home sales fell 0.4% from July last month to a seasonally adjusted annual rate of 4.8 million.

ticker safety last Change change %
FMCC Federal Mortgage Mortgage Corporation 0.548 -0.03 -4.36%

The Associated Press contributed to this report.

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