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Mortgage rates rise for sixth straight week to nearly 7%

Freddie Mac said Thursday that mortgage rates rose for a sixth straight week. Photo by Dan Moyle/Flickr
Freddie Mac said Thursday that mortgage rates rose for a sixth straight week. Photo by Dan Moyle/Flickr

Sept. 29 (UPI) -- Mortgage rates rose for the sixth straight week, with a 30-year fixed-rate mortgage averaging 6.7%, Freddie Mac announced Thursday.

The 6.7% average was more than double the 3.01% rate from last year at this time. A 15-year fixed-rate mortgage averaged 5.96%, compared to 2.28% last year.

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Mortgage rates have hit the highest level since 2007.

"The uncertainty and volatility in financial markets is heavily impacting mortgage rates," said Sam Khater, Freddie Mac's chief economist. "Our survey indicates that the range of weekly rate quotes for the 30-year fixed-rate mortgage has more than doubled over the last year. This means that for the typical mortgage amount, a borrower who locked-in at the higher end of the range would pay several hundred dollars more than a borrower who locked-in at the lower end of the range."

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The average existing-home price in August was $389,500, down from $413,800 in June but 7.7% higher than the August 2021 average price of $361,500, according to the National Association of Realtors.

The Mortgage Bankers Association said yesterday that the number of Americans applying for a new mortgage fell by 3.7% last week, as the Federal Reserve continues to hike interest rates.

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Applications to refinance a home loan declined 11% for the week and were 84% lower than the same week one year ago, according to the association's latest figures.

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"Applications for both purchase and refinances declined last week as mortgage rates continued to increase to multi-year highs following more aggressive policy measures from the Federal Reserve to bring down inflation," Joel Kan, MBA associate vice president, said in a statement.

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