The 30-year fixed-rate mortgage averaged 7.09% in the week ending August 17, up from 6.96% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 5.13%.
Rates have been above 6.5% since the end of May and climbing higher since mid-July. The last time rates were over 7% was in November of last year when they hit 7.08%. This week's average rate is the highest the 30-year, fixed-rate mortgage has been since April 2002 when it was 7.13%.
Treasuries moved higher as investors reacted to the release of the Federal Reserve's meeting minutes on Wednesday, which said members are worried that inflation will linger longer than expected at an elevated level, said George Ratiu, Chief Economist at Keeping Current Matters, a real estate market insights and content company.
While the Fed does not set the interest rates that borrowers pay on mortgages directly, its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasuries, which move based on a combination of anticipation about the Fed's actions, what the Fed actually does and investors' reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.
"As a result, the Fed may opt to take another 'wait-and-see' strategy in its upcoming meeting, which may help potentially mitigate the recent upward trajectory of mortgage rates," Xu said.With inflation still a concern for the Fed, home buyers can expect borrowing costs to stay elevated, said Ratiu.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
As Rosalynn turns 96, the Carters continue to defy the oddsDespite serious health problems, Jimmy and Rosalynn Carter still spend most days beside each other in the living room of the Georgia bungalow they built in 1961.
Read more »
Busy 96 hours for search and rescue crews in Salt Lake CountyCrews with the Salt Lake County Sheriff's Office Search and Rescue team have been extraordinarily busy this week, reporting at least 7 rescues during a 72-hour period.
Read more »
Bit PlayerA blog about digital entertainment, hosted by Jon Healey (August 2006 - August 2008)
Read more »
Today in Sports - Week Ahead, August 18Today in Sports - Week Ahead, August 18 - August 24, Take 2
Read more »
As death toll from Maui wildfire reaches 96, effort to find and identify the dead is just beginningThe blaze is already the deadliest U.S. wildfire in more than a century.
Read more »