Mortgage Archives | Restoring Liberty

Prospective homebuyers face a new chill after the average interest rate on the most popular home loan rose to its highest level since 2006, data from the Mortgage Bankers Association showed on Wednesday.

The average contract rate on a 30-year fixed-rate mortgage rose by 6 basis points to 6.81% for the week that ended Oct. 7, marking a 16-year high for the cost of a home loan.

The rise means that mortgage rates have now more than doubled since the beginning of the year, thanks to aggressive interest rate hikes from the Fed’s fight against inflation.

Those actions, designed to cool the economy sufficiently to curb price pressures, have weighed heavily on the interest-rate-sensitive housing sector as expectations for Fed tightening have led to a surge in Treasury yields. The yield on the 10-year note acts as a benchmark for mortgage rates. (Read more from “Mortgage Rates Hit 16 Year High” HERE)

Photo credit: Flickr

Delete Facebook, Delete Twitter, Follow Restoring Liberty and Joe Miller at gab HERE.

Mortgage rates just posted their biggest weekly plunge since the 2008 financial crisis while the red-hot housing market appears to be cooling off.

Mortgage rates rose quickly as the Federal Reserve began hiking interest rates to combat inflation, although last week, they steeply fell off. The average rate on a 30-year loan is now at 5.3%, down from 5.7% last week, Freddie Mac announced on Thursday.

The government-sponsored housing enterprise pointed out in a statement that concerns about a recession continue to percolate as the rate plunges.

“While the drop provides minor relief to buyers, the housing market will continue to normalize if home price growth materially slows due to the combination of low housing affordability and an expected economic slowdown,” the statement said. (Read more from “Mortgage Rates Have Biggest Weekly Drop Since 2008” HERE)

Photo credit: Flickr

Delete Facebook, Delete Twitter, Follow Restoring Liberty and Joe Miller at gab HERE.

Posts