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The average rate on a 30-year mortgage reached 7.08% this week in the US, its highest level since April 2002, mortgage servicer Freddie Mac announced on Thursday.
The federal agency said in a statement that this percentage leads to further stagnation in the housing market.
“As inflation endures, consumers are seeing higher costs at every turn, causing further declines in consumer confidence this month,” said Sam Khater, the institution’s chief economist.
According to their findings, many potential homebuyers choose to wait and see where the market will end up, pushing demand and house prices “even further down.”
One year ago, the average long-term fixed mortgage rate stood at 3.14%.
The 15-year mortgage rate averaged 6.36% this week, up from 2.37% last year.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 5.96% this week, compared with an average of 2.56% in the same week of 2021.