Home Loan
Home Loan
Posted on Aug 18, 2023
30-year-fixed-rate-mortgage-reaches-its-highest-level-over
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Mortgage Rates Rise
The average rate for the most common type of mortgage in the US has risen to almost 7.1%, according to data from a survey of lenders made by mortgage financing giant Freddie Mac. The figure—for 30-year fixed-rate loans—is the highest since December 2001 and is up two percentage points over the past year (and more than 4.4 points from the all-time low seen in January 2021).
Among other factors, mortgage rates are influenced by the Federal Reserve, which hiked the federal funds rate from 0% to 5.25-5.5% over the past year and a half in an effort to fight inflation. Higher mortgage rates mean higher costs for would-be homebuyers and tend to cause a slowdown in the housing market. Sales of existing homes dropped by almost 19% year-over-year in June, according to reports—though the median price increased to $410K, close to an all-time high.
For context, a buyer making a 20% down payment on the median-priced house would pay $465K in interest over the life of a 30-year fixed-rate mortgage (see calculator)—more than the cost of the house itself. https://www.mortgagecalculator.org/
The average rate for the most common type of mortgage in the US has risen to almost 7.1%, according to data from a survey of lenders made by mortgage financing giant Freddie Mac. The figure—for 30-year fixed-rate loans—is the highest since December 2001 and is up two percentage points over the past year (and more than 4.4 points from the all-time low seen in January 2021).
Among other factors, mortgage rates are influenced by the Federal Reserve, which hiked the federal funds rate from 0% to 5.25-5.5% over the past year and a half in an effort to fight inflation. Higher mortgage rates mean higher costs for would-be homebuyers and tend to cause a slowdown in the housing market. Sales of existing homes dropped by almost 19% year-over-year in June, according to reports—though the median price increased to $410K, close to an all-time high.
For context, a buyer making a 20% down payment on the median-priced house would pay $465K in interest over the life of a 30-year fixed-rate mortgage (see calculator)—more than the cost of the house itself. https://www.mortgagecalculator.org/
30-year-fixed-rate-mortgage-reaches-its-highest-level-over
Posted from freddiemac.gcs-web.com
Housing
Money
Home Loan
Mortgage
Edited >1 y ago
Posted >1 y ago
Responses: 4
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Who can afford housing any more,Even rent ,My Rent went from ,$545.00 - $ 875.00, and my bills are in a while wind cause of it,I takened aback and do not see the end in site,Outside trusting God,
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Lt Col Charlie Brown
Wow...that's quite the jump. We're dealing with real estate taxes here...ours have more than doubled over the past five years
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Historical records show that the average interest rate % for 30-year fixed rate mortgages from 1971-2025 is 7.71%. Close to where we are right now. Average, for the last 54 years...
The highest annual average interest rate was 16.64% in 1981. (Reagan) The lowest rate was 2.96% in 2021. (Biden). There's no question that rates went up over President Biden's term. That low of around 3% was the lowest I've seen in my lifetime and was not going to hold either way.
Let's see where they stabilize.
The highest annual average interest rate was 16.64% in 1981. (Reagan) The lowest rate was 2.96% in 2021. (Biden). There's no question that rates went up over President Biden's term. That low of around 3% was the lowest I've seen in my lifetime and was not going to hold either way.
Let's see where they stabilize.
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