Long-term US mortgage rates see the most significant one-week jump in 35 years
Key takeaways:
- The rate for a 30-year mortgage rose from 5.23% to 5.78% this week, the highest since November of 2008 during the housing problem.
- The highest its been since November of 2008 during the housing situation.
Average long-term US mortgage rates had their most significant one-week leap in 35 years, with the Federal Reserve expanding its crucial rate by three-quarters of a point to tame high inflation.
On Thursday, mortgage customer Freddie Mac reported that the 30-year rate rose from 5.23% the previous week to 5.78% this week, the highest since November 2008 during the housing problem.
Wednesday's rate hike by the Fed was the most significant in a single action since 1994.
The quick jump in rates and sharp growth in home costs have pushed possible homebuyers out of the market. Mortgage applications are down almost 15% from last year, and refinancings are down more than 70%, according to the Mortgage Bankers Association.
Those figures will probably decline with more Fed rate increases a near lock.
The Fed's colossal rate hike came after data released last week showed US inflation grew the previous month to a four-decade high of 8.6%.