U.S. 30-year mortgage shoots up to decades-long high - Freddie Mac

Applied Energetics

24/08/2023 19:31

By Safiyah Riddle
       Aug 24 (Reuters) - Rates on the most popular U.S. home
loan hit the highest level since 2001 on Thursday, according to
Freddie Mac's weekly mortgage market survey.
    The popular 30-year mortgage rates rose to an average of
7.23% this week, the highest level in over two decades, up from
7.09% last week, which was the first time the rate passed 7% in
2023. Earlier this week, the Mortgage Brokers Association
reported that decades-high borrowing costs drove mortgage
applications to a 28-year low over the same period. 
    The yield on the 10-year Treasury note, which acts as a
benchmark for mortgage rates, has increased throughout the month
as resilient economic data stokes concerns that the Federal
Reserve's interest rate hiking campaign is not over. 
    Although expensive borrowing forced home sales to plummet
last year, an acute lack of inventory has threatened a housing
market recovery. 
    Freddie Mac chief economist Sam Khater said more increases
could be on the horizon if strong consumer spending and the
labor market continue to be this robust. 
    "This week, the 30-year fixed-rate mortgage reached its
highest level since 2001 and indications of ongoing economic
strength will likely continue to keep upward pressure on rates
in the short-term," said Khater. 

 (Reporting by Safiyah Riddle; Editing by Chizu Nomiyama)
 ((Safiyah.riddle@thomsonreuters.com;))