Washington, Oct 27 – The average rate of a 30-year mortgage reached 7.08% this week in the United States, its highest level since April 2002, mortgage manager Freddie Mac announced on Thursday.
That federal agency specified in a statement that this percentage leads to a greater stagnation of the real estate market.
“As inflation endures, consumers are finding higher costs at every turn, causing further declines in consumer confidence this month,” the chief economist of that institution, Sam Khater, said in that note.
Many potential homebuyers, he concludes, choose to wait and see where the market will end, pushing demand and home prices “further down.”
A year ago on this same date, the average rate on a long-term fixed mortgage stood at 3.14%.
The 15-year mortgage rate registered an average of 6.36% this week, compared to 2.37% last year.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) posted an average this week of 5.96%, compared to the average of 2.56% in the same week of 2021.