Borrowing costs have climbed to their highest level since 2008, sending shock waves through the housing market.
The Federal Reserve’s largest increase to its benchmark rate since 1994 could put more upward pressure on near-6% mortgage rates.
The reversal after declines over the last three weeks has economists closely watching for the Fed’s anticipated rate hike next week.
Housing demand is slowing as mortgage rates climb and more buyers become priced out.
The interest rate for the 30-year fixed-rate mortgage averaged 5.09% this week, continuing to inch down slightly.
Recent home buyers say they felt rushed to make a purchase decision due to market pressure and have concerns about their mortgage, a new study shows.
Overall mortgage demand—which includes refinancings and home purchases—has fallen to its lowest level since 2018.
The 30-year fixed-rate mortgage averaged 5.10% this week, down from last week’s 5.25% average.
Some buyers are being drawn to adjustable-rate mortgages for potential savings up against rising rates, but those savings do come with risks.
Amid market uncertainty, buyers focus on lower initial rates.
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