Mortgage rates finally crossed over that 7% threshold as rates climbed for the third straight week, according to the Freddie Mac weekly survey.
- The most watched 30-year fixed was up 14 basis points to 7.08% for the weekending October 27th, this is up 394 basis points from one year ago.
- The 15-year fixed was up 13 points to 6.36% and the 5/1 ARM was a quarter point to 5.71%
Affordability Issues. According to Realtor.com, a buyer who puts 20% down on a median-priced home would have a monthly payment of $2,300. That is up by almost 80% from a year ago, when the monthly payment was $1,300.
Analysis. Sam Khater, Freddie Mac’s Chief Economist, says the current rate has hit a 20-year high. “The 30-year fixed-rate mortgage broke seven percent for the first time since April 2002, leading to greater stagnation in the housing market…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.”