Average long-term US mortgage rate at highest level in nearly 3 years after 7th weekly rise in a row
Higher borrowing costs are slowing home sales and refinancing, with mortgage applications falling for the fifth straight week, the Mortgage Bankers Association said.
- The average long-term mortgage rate climbed to 7.40% this week, reaching its highest level in nearly three years, according to mortgage buyer Freddie Mac.
- Rates generally follow the 10-year Treasury yield, which lenders use to price home loans; this yield has risen to levels unseen since 2002 due to inflation and Federal Reserve policy.
- Mortgage applications fell for the fifth consecutive week as higher rates discourage refinancing and home buying, according to the Mortgage Bankers Association.
- For a borrower financing a $400,000 home loan, the 1.42 percentage point rate increase since the start of the conflict in Iran translates into an additional monthly cost of $376.
- Sales of previously occupied homes fell 2% last month to a seasonally adjusted annual rate of 3.98 million units, the slowest pace in more than a year, the National Association of Realtors reported.
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11 Articles
The American dream of housing, increasingly difficult. Real estate prices have grown much more than the incomes of middle-income households since the beginning of the century, while rents and the cost of financing a purchase maintain the pressure on family economies. In 2024, almost half of the American households living on rent went more than 30% of their income to cover housing costs. And the rise in mortgages and the increase in rates by the …
Associated Press News
Average long-term US mortgage rate at highest level in nearly 3 years after 7th weekly rise in a row
Mortgage rates marched higher for the seventh week in a row, driving the average long-term U.S. home loan rate to its highest level in nearly three years.
7.40% Mortgage Rates: What Buyers Pay Each Month
Freddie Mac's 7.40% average mortgage rate translates into a substantially higher payment than a year ago. We calculate the effect on a sample $400,000 loan. Continue Reading At 7.40%, Mortgage Rates Add Hundreds to Monthly Payments as Buyers Recalculate
The average rate of the popular U.S. 30-year fixed-rate mortgage skyrocketed this week to a peak in nearly three years, and could continue to rise as concerns about inflation boost yields on Treasury bonds. The average interest rate on mortgages to 30 [...] The post Mortgages in the U.S. reach interest rate of 7.40% due to inflationary pressures appeared first on Entre Lineas - Noticias de Chihuahua.
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