U.S. Mortgage Rates Surpass 7%

Mortgage rates, or interest rates on home loans, has breached the 7% mark, rising to the highest level since 2002, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 7.08 percent for the week ending October 27, 2022, up from 6.94 percent last week. A year ago at this time, the average rate was 3.14 percent.

The 15-year FRM this week averaged 6.36 percent, up from 6.23 percent last week. A year ago at this time, the 15-year FRM averaged 2.37 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 5.96 percent, up from 5.71 percent last week. It was 2.56 percent a year ago.

"The 30-year fixed-rate mortgage broke seven percent for the first time since April 2002, leading to greater stagnation in the housing market," said Sam Khater, Freddie Mac's Chief Economist. "As inflation endures, consumers are seeing higher costs at every turn, causing further declines in consumer confidence this month. In fact, many potential homebuyers are choosing to wait and see where the housing market will end up, pushing demand and home prices further downward."

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