(Bloomberg) – Mortgage rates in the U.S. surged to their highest levels since June, adding to pressure on the housing market, where demand has fallen sharply from its pandemic-era peak.
The average annual loan rises to 5.55% from 5.% Last week, Freddie Mac (OTC: FMCC) on Thursday said in a statement. With the exception of a weekly rate hike in mid-June 55 basis points, the most recent increase is the largest since
Interest Rate Tracking The rise in US Treasury yields, this U.S. Treasury yields rose above 3 percent for the first time in a month this week. Investors are bracing for the next move from the Federal Reserve, which has been raising its benchmark interest rate in a bid to curb the hottest inflation in decades.
High home prices and rising mortgage costs this year have driven many would-be buyers out of the market, prompting a rapid turnaround in transactions that sent shockwaves through the real estate industry.
Home sellers are lowering asking prices and brokerages are laying off staff. As inventory builds, builders are slowing construction starts while ramping up incentives to lure customers. Some non-bank lenders are struggling to stay in business as mortgage applications hit 22 year lows.
“A combination of rising mortgage rates and slowing economic growth is weighing on the housing market,” Freddie Mac chief economist Sam Khater said in a statement. “Home sales continue to decline, prices are slowing, and consumer confidence is low. However, there are still potential homebuyers waiting to return to the market amid weakening demand.”
Currently30-annual average, the borrower has $22, Mortgage payments are $1 per month, 713 more than at the end of last year Out of approximately $430 .
Freddie Mac’s loan data was collected from Monday to Wednesday. On Mortgage News Daily, which updates its data more frequently, -APR averages 5.300% late Wednesday.
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