Interest rates on 30-year mortgages rose again last week after falling slightly in the week ahead of the Federal Reserve’s recent announcement that it would continue to tighten monetary policy, according to Freddie Mac.
The average interest rate on a 30-year fixed-rate mortgage rose to 7.08% in the week ending November 10, according to Freddie Mac. Leading Mortgage Market Research. this is, previous week The average was 6.95%, significantly higher than last year’s 2.98%.
Other loan terms were also raised last week. The 15-year mortgage rate was 6.38% for him, up from 6.29% last week and 2.27% last year. 5-year Treasury Indexed Hybrid Adjustable Rate Home Loans (ARMs) rose to 6.06% last week, up from 5.95% the week before and up from 2.53% last year.
“The housing market is the most rate-sensitive segment of the economy, and the impact of interest rates on home buyers continues to evolve,” said Sam Cater, chief economist at Freddie Mac. and is not expected to improve as we approach the end of the year.”
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Federal Reserve may delay rate hike on latest inflation rate
Inflation remains high but slowed significantly in October. up to date Bureau of Labor Statistics (BLS) report. The consumer price index (CPI), a measure of inflation, rose by an annualized rate of 7.7% in October. 8.2% increase in September.
The Fed will use two economic reports (CPI data) from October and November to determine the rate hike amount at its next meeting in December, according to Realtor.com chief economist Daniel Hale.
“Today’s reading is a step in the right direction and if the momentum continues, it could mean the Fed will only raise rates by another 50 basis points in December,” Hale said. said in a statement.
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Housing sentiment plummets to all-time low, survey shows
Consumer sentiment toward housing fell 4.1 points to 56.7, down 18.8 points from the same period last year. Fannie Mae Home Buying Sentiment Index (HPSI). The index is based on the Fannie Mae National Housing Survey.
According to HPSI, only 16% of respondents say it’s a good time to buy a home, which is “the lowest in new surveys.” Meanwhile, 65% of respondents said they expect interest rates to continue rising over the next 12 months, and 37% of consumers said they expect home prices to fall over the next 12 months, compared to 35% in September. said to expect.
Fannie Mae chief economist Doug Duncan said, “Continued affordability constraints are reducing homebuyer demand and making homeowners reluctant to sell at potentially discounted prices. As a result, we expect home sales to slow further in the coming months, which is in line with our forecast.
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