Mortgage rates jumped higher for the fifth week in a row, further pushing past 6% in the face of yet another aggressive rate hike from the Federal Reserve.
The 30-year fixed-rate mortgage averaged 6.29% in the week ending September 22, up from 6.02% the week before, according to Freddie Mac. That is significantly higher than this time last year when it was 2.88% and it is the highest level seen since October 2008.
Mortgage rates have nearly doubled since the start of this year. After climbing to nearly 6% in mid-June, recession fears made rates more volatile. But now all eyes are on the central bank’s campaign of hiking interest rates in its ongoing fight against inflation.
“The housing market continues to face headwinds as mortgage rates increase again this week,” said Sam Khater, Freddie Mac’s chief economist.
As a result of higher rates, home prices have started to soften and sales have decreased, but there is still a shortage of available homes for sale.
“Despite this decrease in sales, the number of homes for sale remains well below normal levels,” Khater said.
This is a developing story. It will be updated.