Mortgage rates reach highest level in over 20 years
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 for a 30-year fixed mortgage is now at its highest level in over 20 years, Freddie Mac reported Thursday.
Freddie Mac's latest Primary Mortgage Market Survey shows that the average rate for the benchmark 30-year fixed note hit 7.09% this week for the first time since 2002, topping 7% for the first time since last November after rising from 6.96% the week before.
The average rate for a 30-year mortgage reached its highest level in more than 20 years this week. (Dustin Chambers/Bloomberg via Getty Images / Getty Images)
At this time last year, 30-year fixed rate products averaged 5.13%.
The rate for a 15-year fixed mortgage also rose, averaging 6.46% after coming in at 6.34% last week. One year ago, the rate for a 15-year fixed note averaged 4.55%.
REAL ESTATE EXPERTS SAY ‘CHALLENGES’ TO BUYERS AND SELLERS ARE THE ‘GREATEST EVER’
«The economy continues to do better than expected, and the 10-year Treasury yield has moved up, causing mortgage rates to climb,» said Sam Khater, Freddie Mac’s chief economist. «Demand has been impacted by affordability headwinds, but low inventory remains the root cause of stalling home sales.»
A recent report from Realtor.com showed that the number of available homes on the market in June was down more than 47% from the typical amount before the COVID-19 pandemic began in early 2020.
The Federal Reserve's aggressive rate-hike campaign is cooling the housing market. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
The Federal Reserve's aggressive interest-rate hike campaign sent
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