Home NewsStock Market News U.S. mortgage interest rates hit a new record this week with 5 liters | Anue Juheng- Overseas Real Estate Market

U.S. mortgage interest rates hit a new record this week with 5 liters | Anue Juheng- Overseas Real Estate Market

by WOOWinvest
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U.S. mortgage interest rates hit a new record this week with 5 liters | Anue Juheng- Overseas Real Estate Market


According to data released by Freddie Mac on Thursday (22nd), the 30-year fixed mortgage rate climbed this week along with the 10-year U.S. Treasury yield, rising to 6.29% from a new high of 6.02% last week. The 5-week rally set a new record again, hitting a new high since October 2008.

At the time of writing, the US 10-year bond yield rose to 3.702%, while the US 2-year bond yield also soared to 4.15%, a deepening inversion, a signal of economic recession.

The U.S. Federal Reserve raised its benchmark interest rate by 3 yards (75 basis points) on Wednesday and signaled further rate hikes in the future to cool inflation and the housing market, with Fed Chairman Powell saying home prices “are rising at an unsustainable rate.” “. The Fed’s rate hike could further push up mortgage rates, which have nearly doubled since the start of the year.

Rising borrowing costs have dampened the housing boom during the COVID-19 pandemic, cooling home buying sentiment and reducing affordability for those who have already bought it. The National Association of Realtors (NAR) released data yesterday showing that US existing home sales fell for seven consecutive months in August, the longest losing streak since the housing market crashed in 2007.

Freddie Mac chief economist Sam Khater said the housing market continued to face headwinds, with prices softening and home sales falling, but despite the softness in sales, the number of homes for sale remained well below normal levels.

While Freddie Mac’s egg agency survey metric is highly visible, it lags some other metrics. The average rate on the popular 30-year fixed-rate mortgage is now showing at 6.36%, up from 6.3% last week, according to Mortgage News Daily.

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