Mortgage rates have risen to their highest level in more than 15 years. This is his highest level since 2008 since the financial crisis in 2009, putting pressure on an already cooling US housing market.
Average interest rates for 30-year fixed mortgages rose to 6.7%, according to a lender survey released Thursday.
This is the highest level since July 2007 and the sixth straight week of gains. A year ago the interest rate was 3.01% for him.
Home loan interest rates continue to soar series of interest rate hikes from the Federal Reserve.The central bank acted aggressively to cool down Highest inflation in decades, raised the base interest rate five times this year. Officials have indicated that more are likely in the coming months.
Mortgage rates typically fluctuate in line with benchmark 10-year Treasury yields, rather than rates set by the Fed, but 10-year yields are heavily influenced by Fed rate expectations.
10-year yields this week Widespread turmoil in bond markets. on wednesday, 10-Year Yields Temporarily Hit 4%, the highest in more than a decade. It fell sharply later in the day, marking its biggest one-day drop since 2009.
Freddie Mac chief economist Sam Cater said in a statement that uncertainty has widened the gap in what various lenders are offering. “The wide spread in interest rates means it has become even more important for homebuyers to shop with a variety of lenders.”
Interest rates have a big impact on homes because they greatly affect a buyer’s monthly payment.
For example, a borrower who purchased a $500,000 home a year ago with a 20% down payment can expect to pay approximately $208,000 in interest over 30 years. mortgage calculator From Bankrate.com. Today, the buyer is expected to pay approximately $529,000 in interest.
““The wide spread in interest rates means it has become even more important for homebuyers to shop with a variety of lenders.”“
With interest rates soaring this year, some would-be buyers gave up and I decided to continue renting.Others spend far more than planned on their monthly payments. Some existing homeowners reluctant to sellbecause it could mean taking out a new mortgage at a very high interest rate.
Higher interest rates also don’t make refinancing an attractive proposition.
Data released Wednesday by the Mortgage Bankers Association showed refinancing applications down nearly 85% year-over-year.A drop has forced some mortgage lenders reduce work or close shopsas refinancing accounted for the majority of originations during the pandemic.
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