US mortgage rates hit 16-year high – InsuranceNewsNet

According to data from Mortgage Bankers Association (MBA) released Wednesday.

The 30-year fixed mortgage rate rose to 6.75% in the last week of September, the highest figure since 2006. Mortgage rates climbed 1.3 percentage points on seven straight weeks of increases .

Mortgage applications fell 14.2% from the previous week, according to the MBA, amid rising mortgage rates, which stems from the of the Federal Reserve persistent increases in interest rates aimed at fighting inflation.

“The sharp rise in rates continued to halt refinancing activity and also impact purchase orders, which fell 37% from last year’s pace,” Joel CanMBA’s associate vice president of economic and industry forecasting, said in a statement.

“There was also an impact from the arrival of Hurricane Ian in Florida last week resulting in widespread closures and evacuations,” he added.

Mortgage rates have more than doubled over the past year, making monthly payments much more expensive.

Exorbitant rates, combined with near-record house prices, are scaring potential buyers away from the housing market. Home sales are slowing across much of the WE after a prolonged housing boom during the pandemic. Analysts expect prices to plunge in the coming months.

Federal Reserve President Jerome Powell recently told reporters that WE housing market will likely have to “correct” to bring prices back to achievable levels.

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