Struggling US home buyers, and market, face new hurdles as mortgage rates near 7%
Freddie Mac said the 30-year rate has risen for four straight weeks, adding hundreds of dollars to monthly borrowing costs.
- On Wednesday, the Federal Reserve voted to boost its benchmark interest rate by 0.25%, pushing 30-year fixed-rate mortgages above the 7% threshold this week.
- Mortgage rates follow the trajectory of 10-year Treasurys, influenced by inflation and bond market expectations. Rising borrowing costs have kept the housing market in a rut since the war between the U.S. and Iran began in late February.
- Freddie Mac reported a 14-month high of 6.76% on Sept. 10, while Orlando Regional Realtor Association President Chris Atwell noted Central Florida median home prices remain above $400,000.
- Higher rates squeeze affordability and sideline prospective buyers, said Lisa Sturtevant, chief economist at Bright MLS. Sellers may need to "reduce prices, offer more concessions or lower the price of the house" to attract buyers.
- The Fed indicated Wednesday that another rate hike could occur later this year. "I believe probably for the rest of the year, we'll be in that same environment," Ali Partovi of Partovi Funding LLC said.
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New York Post
online-listing.comMortgage rates jump to nearly 7% after Fed rate hike — highest in nearly two years
The Fed’s decision Wednesday to increase its key interest rate for the first time in three years in a bid to tame surging inflation could also put upward pressure on mortgage rates.
My Mother Lode
thealbertan.comStruggling US homebuyers, and market, face new hurdles as mortgage rates climb to nearly 7%
Mortgage rates climbed for the fourth week in a row, driving the average long-term U.S. home loan rate to just below 7%, its highest level in over 19 months. The benchmark 30-year fixed rate mortgage rate rose to 6.95% from 6.76% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate...
Mortgage rates climb for fourth-straight week to hit highest level since Trump took office
By Samantha Delouya, CNN (CNN) — Homebuyers could soon have to face an unwelcome milestone: a 7% mortgage rate.The average 30-year fixed mortgage rate inched closer to that level this week, climbing to 6.95%, up from 6.76% last week, according to Freddie Mac. It’s the fourth-straight week of rising rates and the largest one-week jump
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