Mortgage Rates Reach Highest Level Since 2006
- 2 years ago
Mortgage Rates , Reach Highest Level , Since 2006.
Reuters reports that the United States
housing sector continues to feel the impact
of tightening financial conditions.
According to data from the Mortgage Bankers Association
(MBA), interest rates on the most popular home
loan have reached their highest level since 2006. .
Since the beginning of 2022,
mortgage rates have more
than doubled in the U.S. .
The Federal Reserve has been
driving up interest rates in an attempt
to combat record-high inflation. .
In the week ending October 7, the average
contract rate on a 30-year fixed-rate mortgage
rose by 6 basis points to reach 6.81%.
Meanwhile, the MBA's Market Composite Index dropped 2.0% from one week earlier and is down roughly 69% from the same time in 2021.
The MBA's Purchase Index, which measures all
mortgage loan applications for the purchase of
a single family home, fell 2.1% from a week earlier. .
That index is now down 39%
from the same time last year. .
At the same time, the MBA's
refinance Index declined 1.8%
and is down 86% from one year ago.
Home resale postings have been declining
for seven straight months, while home prices
have remained in a highly-competitive market.
As a result, would-be homebuyers
are continuing to face high prices
due to a shortage of properties for sale
Reuters reports that the United States
housing sector continues to feel the impact
of tightening financial conditions.
According to data from the Mortgage Bankers Association
(MBA), interest rates on the most popular home
loan have reached their highest level since 2006. .
Since the beginning of 2022,
mortgage rates have more
than doubled in the U.S. .
The Federal Reserve has been
driving up interest rates in an attempt
to combat record-high inflation. .
In the week ending October 7, the average
contract rate on a 30-year fixed-rate mortgage
rose by 6 basis points to reach 6.81%.
Meanwhile, the MBA's Market Composite Index dropped 2.0% from one week earlier and is down roughly 69% from the same time in 2021.
The MBA's Purchase Index, which measures all
mortgage loan applications for the purchase of
a single family home, fell 2.1% from a week earlier. .
That index is now down 39%
from the same time last year. .
At the same time, the MBA's
refinance Index declined 1.8%
and is down 86% from one year ago.
Home resale postings have been declining
for seven straight months, while home prices
have remained in a highly-competitive market.
As a result, would-be homebuyers
are continuing to face high prices
due to a shortage of properties for sale