US 30-year fixed-rate mortgage rate hits 7.40%, likely to further erode housing demand
FMCC•FMCC•FMCC•FMCC•The average US 30-year fixed mortgage rate rose to 7.40%, its highest level since November 2023, from 7.28% last week. The rate has climbed 142 basis points since the war started at the end of February.
The average rate on a 30-year fixed-rate mortgage reached 7.40%, Freddie Mac said, up from 7.28% the previous week and the highest level since November 2023. The article says inflation concerns and higher energy prices have pushed up Treasury yields, which mortgage rates track.
Higher mortgage rates and elevated home prices are weighing on housing demand, while homeowners with mortgage contracts below 5% have been reluctant to sell, contributing to a national housing shortage, especially of starter homes. Lisa Sturtevant of Bright MLS said higher rates are holding back both demand and supply, making a housing market “stall” more likely than a “crash” this fall.
