Freddie Mac said the average rate on a 30-year home loan reached its highest level since 2002, which could increase costs for borrowers by hundreds of dollars a month.
The average long-term U.S. mortgage rate climbed this week to its highest level in more than 20 years, pushing up borrowing costs for homebuyers already challenged by a housing market that remains competitive due to a dearth of homes for sale.
The 30-year mortgage average is wavering just below a 21-year high. Movement was mixed across other loan types, with the three major ARM averages rising slightly.
Mortgage rates are now the highest they have been in more than two decades, thanks to the Federal Reserve's efforts to counteract the historic bout of inflation, hurting affordability and threatening the market.
The 30-year fixed-rate mortgage averaged 7.09% in the week ending August 17, up from 6.96% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 5.13%.
Sharply higher rates are contributing to a dearth of available homes, as homeowners who locked into lower borrowing costs two years ago are now reluctant to sell.
“The economy continues to do better than expected and the 10-year Treasury yield has moved up, causing mortgage rates to climb,” said Sam Khater, Freddie
The average long-term U.S. mortgage rate climbed this week to its highest level in more than 20 years, grim news for would-be homebuyers already challenged by a housing market that remains competitive due to a dearth of homes for sale. Mortgage buyer Freddie Mac said Thursday that the average rate
Mortgage rates surged this week, with the popular 30-year fixed rate hitting the highest level in more than 21 years, further complicating the housing market outlook.
Mortgage rates jumped to a 21-year high this week, climbing back above 7% and making it even harder for buyers to afford homes in an already difficult market.
Identical headlines usually mean shared wire copy. They are counted as separate articles but are not independent confirmation.
Average U.S. mortgage rate climbs to highest level in 21 years | Since Then
