Mortgage rates rose for a fourth straight week, reaching the highest level since December 2000.
(Bloomberg) — Mortgage rates rose for a fourth straight week, reaching the highest level since December 2000.
The average for a 30-year fixed loan was 7.49%, up from 7.31% last week, Freddie Mac said in a statement Thursday.
Borrowing costs have topped 7% since mid-August, a streak that helped send applications for home-purchase loans to a 28-year low. High mortgage rates and prices are shutting out would-be buyers, who face one of the most unaffordable housing markets on record. Current owners are holding tight to their cheaper loans, contributing to a shortage of listings across the country.
“Several factors, including shifts in inflation, the job market and uncertainty around the Federal Reserve’s next move, are contributing to the highest mortgage rates in a generation,” Sam Khater, Freddie Mac’s chief economist, said in the statement. “Unsurprisingly, this is pulling back homebuyer demand.”
While list prices rose year over year in September, they declined slightly from August, according to a report by Realtor.com that also noted a month-over-month increase in the share of homes getting discounted. But the percentage of listings with price cuts was still lower than in past years.
“An uptick in homes with reduced prices is a small break for buyers,” said Danielle Hale, Realtor.com’s chief economist. “Yet, the larger context remains challenging.”
Benchmark Treasury yields jumped this week in anticipation that the Federal Reserve will keep interest rates higher for an extended period. September’s jobs report, due Friday, “will tell us whether the economy aligns with projections and holds significant importance in clarifying the path forward,” said Jiayi Xu, a Realtor.com economist.
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