Mortgage rates hit a 7-year high as easy-money era ends
Rates for home loans jumped along with yields in the broader bond market, taking financing costs to a recent high and raising fresh questions about the effect of another headwind on a housing market that’s already sputtering.
The 30-year fixed-rate mortgage averaged 4.72% in the September 27 week, up from 4.65%, mortgage liquidity provider Freddie Mac said Thursday. That marked the fifth straight weekly gain for the benchmark product, and took it to its highest point since April, 2011.
Mortgage rates track the U.S. 10-year Treasury note, which powered higher over the past week as investors braced for the Federal Reserve to raise short-term interest rates for the third time this year.
The past week has brought a flurry of housing data, none of it rosy. In August, sales of existing homes were flat, sales of new homes were higher but sales tallies in previous months were marked sharply down from initial estimates, and home-contract signings swooned.
https://www.msn.com/en-us/money/realestate/mortgage-rates-hit-a-7-year-high-as-easy-money-era-ends/ar-BBNCzRW?li=BBnbfcL