(Reuters) – The average interest rate on the most popular U.S. home loan climbed to its highest level since October 2008, data from the Mortgage Bankers Association (MBA) showed on Wednesday.
Rising mortgage rates are putting increasing pressure on the rate-sensitive real estate sector as the Federal Reserve aggressively raises borrowing costs to curb high inflation.
The Federal Reserve will raise interest rates by three-quarters of a percentage point for the third time in a row later on Wednesday.
Expectations of Fed tightening have sent Treasury yields surging since the start of the year. 10 The yield on the annual note serves as a benchmark for mortgage rates.
Average 30 Annual Fixed Rate Mortgage Contract Rate Rising 24 basis points to 6.25% of the week ended September 16 since the end of the financial crisis and the Great Recession A level never seen before.
The MBA also said the market composite index, which measures mortgage application volume, rose 3.8% from a week earlier, but was still well below last year’s level. Its refinancing index was up 16.4% from the previous week, but down 2008.7% from a year ago.