OAN’s James Meyers
12:22 PM – Thursday, August 17, 2023
The U.S. mortgage rate rose to the highest mark in over 20 years. According to Mortgage Bankers Association, the 30-year mortgage rate rose to 7.16% last week, which matches the highest since 2001.
The data also showed that home-purchase applications fell for the fifth straight week, and is at the second lowest level since 1995.
Experts predict mortgage rates will go above 8%, which has not happened since 2000, according to data gathered by Freddie Mac financial company.
The 30-year mortgage rate is at an important stage, Lawrence Yun, chief economist at the Association of Realtors told the DailyMail.
“If the 30-year-fixed mortgage rate can hold at a high mark of 7.2 percent and the 10-year yield holds at 4.2 percent then this would be high for mortgage rates before retreating,” she said.
Cristian deRitis, Deputy Chief Economist said mortgage rates have not been seen at this level since the Great Recession.
“Historically the mortgage-rate spread has only been around this level only during periods of financial crisis such as the Great Recession or the early 1980s recession.”
Additionally, data compiled showed the number of homeowners properties in the month of June was 20% lower than a year ago.
The Federal Reserve have raised their funds a staggering 10 times in the last 15 months to combat rising inflation.
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