United States mortgage rates hit seven-year high

Irving Hamilton
November 10, 2018

"The more affordable interior markets - which have not yet experienced a slowdown home price growth - may see price growth start to moderate and affordability squeezed if mortgage rates continue to march higher". The survey's contract rate on a 30-year fixed loan rose to 5.15 percent from 5.11 percent. Mortgage interest rates rose on four of five types of loans the MBA tracks.

Other 30-year mortgage rates were up 3 basis points to 7 basis points last week.

In New York City, where luxury condo apartments are in a protracted sales slump, the rising interest rates and declining mortgage applications threaten to spread the pain to all levels of co-op and condo apartment sales. The Fed announced today that it's holding its benchmark federal funds rate in a range of 2 percent to 2.25 percent.

USA mortgage rates reached the highest level since 2011, the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said on Thursday.

Combined with the rapidly rising cost of borrowing money, many would-be buyers are being pushed out of the market.

Sales of existing homes haven't fared any better, falling for six straight months.

Flash floods in Jordan kill at least 7
University and schools have been closed and mosques opened to shelter civilians in areas hit by the floods. Rescue operations continue across Jordan.

Mortgage rates have risen along with the yield on the 10-year note, which has jumped in the past year on expectations of additional short-term rate increases by the Federal Reserve, faster economic growth and potentially higher inflation. A year ago at this time, the 15-year FRM averaged 3.24 percent.

Fixed-rate mortgages move in line with the US 10-year Treasury note, although with a slight delay.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week.

15-year FRM this week averaged 4.33 percent with an average 0.5 point, up from last week when it averaged 4.23 percent. The fee remained at 0.3 points.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER