It was updated Sept 8, 2022, 11:03am.
Freddie Mac data shows that mortgage rates are at their highest level since the Great Recession.
There is a sign outside of a home.
According to Freddie Mac, the 30-year fixed mortgage rate is now 5.89%, up from 5.66% last week and 2.88%) last year.
Freddie Mac's 30-year mortgage rate was 6.04% in November 2008.
Mortgage rates have gone up as the Fed raises interest rates.
The average 30-year fixed mortgage rate is even higher according to a survey by Bankrate. Home sales have been decreasing in the last few months. Home builder confidence fell to a two-year low last month and mortgage applications declined last week as rising mortgage rates made it harder to get a loan. A 75 basis point hike is expected later this month, as the Fed hikes interest rates four times in a row. It is unlikely that mortgage rates will fall any time soon as the Fed is committed to fighting elevated consumer prices and hiking interest rates.
Freddie Mac's chief economist said in a statement that mortgage rates rose again as markets manage the possibility of more aggressive monetary policy due to elevated inflation.
According to Charlie Bilello of Compound Capital Advisors, the increase in mortgage rates over the last year is the largest increase in rates in over four decades.
The stock market rallied even after Powell said that the Fed will keep raising rates.
The housing market could be "torpedo" in the U.S.
Home Builders Slash Prices as Buyers Cancel Contracts.
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