Business
U.S. mortgage rates rocket to 6% for first time since 2008 financial crisis
That’s more than twice the rate August 2021 rate, which was recorded at 2.86%
September 15, 2022 1:10pm
Updated: September 15, 2022 1:10pm
U.S. mortgage rates on Thursday rocketed to a 14-year high with the average 30-year-fixed rate exceeding more than 6% for the first time since 2008, the year the financial crisis struck.
Joel Kan, a Mortgage Bankers Association official said the 6.01%, rate is “essentially double what it was a year ago,” adding that mortgage refinancing has plummeted 80%.
Freddie Mac reported that the average, 30-year fixed-rate was 6.02% in the week ending September 15, a push from 5.89% the previous week.
That’s more than twice the rate August 2021 rate, which was recorded at 2.86%.
In an MBA survey released last Wednesday, the organization said that mortgage applications decreased last week by 1.2% from the prior week.
The MBA survey comes after last week’s Consumer Price Index revealed that costs increased 8.3% from August 2021 to August 2022 amid record inflation.
