Mortgage rates leap to 22-year high
foxbusiness.comFOX Business correspondent Madison Alworth shares why for many first-time homebuyers, the American dream is delayed as a result of high mortgage rates and home prices on Varney and Co.
The average rate on the benchmark 30-year fixed mortgage rose again this week to the highest level since 2001, spelling even more pain for buyers in a market where housing affordability is already at an all-time low.
Freddie Mac's latest data released Thursday shows the average rate for a 30-year fixed note has climbed to 7.23%, marking a second consecutive multi-decade record after last week's average reached 7.09% for the first time since 2002.
A house is for sale in Arlington, Virginia, on July 13, 2023. The average rate for a 30-year fixed mortgage reached the highest level in 22 years this week. ((Photo by SAUL LOEB/AFP via Getty Images) / Getty Images)
At this time last year, the 30-year fixed rate averaged 5.55%.
The rate on a 15-year fixed mortgage is also up, averaging 6.55% after coming in last week at 6.46%. One year ago, the rate on a 15-year fixed note averaged 4.85%.
MORTGAGE DEMAND FALLS TO LOWEST LEVEL SINCE 1995 AS RATES SURGE
Freddie Mac chief economist Sam Khater signaled in a statement that rates are not expected to fall any time soon, saying «indications of ongoing economic strength will likely continue to keep upward pressure on rates in the short-term.»
Homes in Rocklin, California, on Dec. 6, 2022. U.S. homeowners who locked in at low interest rates are balking at selling their homes as rates rise, contributing to the shortage of inventory. ( Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
The Federal Reserve's aggressive interest-rate hike campaign sent mortgage rates soaring last
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