WASHINGTON (HPD) — Average long-term U.S. mortgage rates rose this week and remain close to 7%, ahead of another expected rate hike by the Federal Reserve when it meets early next month.
Mortgage servicer Freddie Mac reported Thursday that the key 30-year average rate rose this week to 6.94% from 6.92% last week. Last year at this time, the rate was 3.09%.
The average rate on 15-year fixed-rate mortgages, popular with those looking to refinance their homes, jumped to 6.23% from 6.09% last week. Last week it topped 6% for the first time since the 2008 housing market crash. A year ago, the 15-year rate was 2.33%.
The Fed’s strong action has stalled a housing sector that — beyond the start of the pandemic — has been active for years.
The National Association of U.S. Realtors said Thursday that existing home sales fell in September for the eighth straight month as home seekers faced sharply higher mortgage rates, inflated house and apartment prices and a limited supply of properties. in the market.
Sales fell 23.8% from September last year and are now at the slowest annual pace since September 2012, excluding the sharp sales slowdown that occurred in May 2020 near the start of the pandemic.