Mortgage rates surged to a 23-year high this week, landing another blow on the housing market.
The rate on the average 30-year fixed mortgage increased to 7.31% from 7.19% the week prior, according to Freddie Mac. That’s the highest rate since mid-December 2000, when it averaged 7.42%.
Rates tracked the 10-year Treasury yield, which spiked to its highest point since 2007 on Wednesday as concerns over a potential US government shutdown grew stronger. The development also comes a week after the Federal Reserve suggested that it would keep its benchmark interest rate higher for longer.
For homebuyers, the uptick in rates again eroded their purchasing power and offered a good reason to stick to the sidelines. Meanwhile, those still on the hunt may face even higher rates down the road.
“Are higher rates causing a significant impact on buyers? The answer is yes,” Jason Sharon, owner of Home Loans Inc., told Yahoo Finance. “Will it kill the housing market? Absolutely not. However, it is pumping hard on the brakes.”
ALL on BIDEN & his Demon-crats !!!!!! Since day ONE in Stolen Office !!!!!!!
You will be needing a Mortgage just to buy a New Vehicle from now on !!!!!!
Welcome to COMMUNISM !!!!! ( Democrat Left )