Average US long-term mortgage rates rose this week ahead of another expected rate hike by the Federal Reserve when it meets early next month.
Ortgage buyer Freddie Mac reported Thursday that the average 30-year key rate rose to 6.94 percent this week from 6.92 percent last week. At this point last year, the rate was 3.09 percent.
The average interest rate on 15-year fixed-rate mortgages, popular with those looking to refinance their homes, rose to 6.23 percent from 6.09 percent last week. Last week it climbed above 6 percent for the first time since the housing market crash of 2008. A year ago, the 15-year rate was 2.33 percent.
In late September, the Federal Reserve raised its benchmark interest rate by another three-quarters point to slow the economy and tame inflation. It was the Fed’s fifth hike this year and the third straight hike of 0.75 percentage points. The next two-day Fed monetary policy meeting begins Nov. 1, with most economists expecting another large three-quarters point hike.
Despite the Fed’s rapid and powerful rate hikes, inflation has barely bounced from 40-year highs and the labor market remains tight.
Many potential buyers have been squeezed out of the market as average mortgage rates have more than doubled this year.
Meanwhile, previously occupied U.S. home sales fell for the eighth straight month in September, matching the pre-pandemic sales pace of 10 years ago when homeseekers faced sharply higher mortgage rates, higher home prices and a still tight home supply on the market.
The National Association of Realtors said yesterday that existing home sales for the last month of August fell 1.5 percent to a seasonally adjusted annualized rate of 4.71 million. That’s slightly higher than economists expected, according to FactSet.
https://www.independent.ie/business/world/average-rate-on-30-year-us-mortgage-nears-7pc-as-federal-reserve-prepares-next-rate-hike-42083470.html The average interest rate on 30-year US mortgages is approaching 7 percent as the Federal Reserve prepares for the next rate hike