Mortgage rates top 7% for the first time since 2002
Mortgage rates rose again this week, topping 7% for the first time since 2002.
The 30-year fixed-rate mortgage averaged 7.08% in the week ending October 27, up from 6.94% the week before, according to Freddie Mac . A year ago, the 30-year fixed rate stood at 3.14%.
The last time the average rate surpassed 7% was in April 2002.
Mortgage rates have risen almost every week since late August and more than doubled since the beginning of the year.
The rapid rise has been fueled by the Federal Reserve’s unprecedented campaign of hiking interest rates in order to tame soaring inflation . The combination of the central bank’s rate hikes, investor’s concerns about a recession and mixed economic news has made mortgage rates increasingly volatile over the past several months.“As inflation endures, consumers are seeing higher costs at every turn, causing further declines in consumer confidence this month,” said Sam Khater, Freddie Mac ’s chief economist. “Many potential homebuyers are choosing to wait and see where the housing market will end up, pushing demand and home prices further downward.”The average mortgage rate is based on a survey of conventional home purchase loans for borrowers who put 20% down and have excellent credit, according to Freddie Mac . But many buyers who put down less money up front or have less than perfect credit will pay more.
This is a developing story and will be updated.
The rapid rise has been fueled by the Federal Reserve’s unprecedented campaign of hiking interest rates in order to tame soaring inflation. The combination of the central bank’s rate hikes, investor’s concerns about a recession and mixed economic news has made mortgage rates increasingly volatile over the past several months.
“As inflation endures, consumers are seeing higher costs at every turn, causing further declines in consumer confidence this month,” said Sam Khater, Freddie Mac’s chief economist. “Many potential homebuyers are choosing to wait and see where the housing market will end up, pushing demand and home prices further downward.”
The average mortgage rate is based on a survey of conventional home purchase loans for borrowers who put 20% down and have excellent credit, according to Freddie Mac.
