Economic Indicators

U.S. mortgage rates spike to highest since November, approach 22-year high

2023.08.09 13:58


© Reuters. New townhomes are seen under construction while building material supplies are in high demand in Tampa, Florida, U.S., May 5, 2021. REUTERS/Octavio Jones

By Safiyah Riddle

(Reuters) – The average U.S. 30-year mortgage rate jumped to a nine-month peak on Wednesday and hit the second-highest rate since 2001, as interest rates reacted sharply to a downgrading of U.S. government debt.

The average 30-year mortgage rate shot up to 7.09% for the week ending Aug. 4, a 16 basis point increase from the previous week’s 6.93% rate, according to a weekly report released by the Mortgage Bankers Association. Rates have not been that high since November 2022, which were then the highest levels since 2001. Potential borrowers adjusted promptly to the surging cost of borrowing: the mortgage applications index – a measure of total mortgage application volume – fell 3.1% to a six-month low of 194.5.

Joel Kan, the Mortgage Bankers Association’s vice president and deputy chief economist, pointed to Fitch’s recent downgrading of U.S. government debt, which affected all types of loans on the weekly survey.

Recent data has suggested that the home price cooling engineered by the Federal Reserve’s aggressive interest rate hiking campaign could be slowing down. While demand in the past year has waned, a severely limited housing stock has kept upward pressure on prices. But the recent data showing higher mortgage rates and crimped demand could be welcome news for overall shelter costs and the U.S. central bank’s effort to bring inflation down.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 98,892.50 0.45%
ethereum
Ethereum (ETH) $ 3,473.02 0.56%
tether
Tether (USDT) $ 0.999597 0.28%
xrp
XRP (XRP) $ 2.29 1.41%
bnb
BNB (BNB) $ 701.35 1.08%
solana
Solana (SOL) $ 198.78 1.54%
dogecoin
Dogecoin (DOGE) $ 0.331519 0.86%
usd-coin
USDC (USDC) $ 1.00 0.20%
staked-ether
Lido Staked Ether (STETH) $ 3,469.54 0.50%
cardano
Cardano (ADA) $ 0.913443 2.40%
tron
TRON (TRX) $ 0.257419 0.02%
avalanche-2
Avalanche (AVAX) $ 40.38 1.91%
chainlink
Chainlink (LINK) $ 24.55 0.81%
the-open-network
Toncoin (TON) $ 5.99 3.77%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,123.18 0.50%
shiba-inu
Shiba Inu (SHIB) $ 0.000023 0.70%
sui
Sui (SUI) $ 4.53 2.28%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,591.42 0.42%
hedera-hashgraph
Hedera (HBAR) $ 0.31719 0.02%
stellar
Stellar (XLM) $ 0.384392 5.15%
polkadot
Polkadot (DOT) $ 7.47 0.68%
weth
WETH (WETH) $ 3,474.20 0.60%
hyperliquid
Hyperliquid (HYPE) $ 28.28 7.60%
bitcoin-cash
Bitcoin Cash (BCH) $ 461.61 2.64%
leo-token
LEO Token (LEO) $ 9.52 0.63%
uniswap
Uniswap (UNI) $ 13.85 4.58%
litecoin
Litecoin (LTC) $ 108.72 0.44%
bitget-token
Bitget Token (BGB) $ 5.68 15.49%
pepe
Pepe (PEPE) $ 0.000018 3.87%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,669.78 0.75%
near
NEAR Protocol (NEAR) $ 5.45 1.98%
ethena-usde
Ethena USDe (USDE) $ 0.999837 0.17%
aave
Aave (AAVE) $ 370.26 1.33%
usds
USDS (USDS) $ 1.00 0.28%
internet-computer
Internet Computer (ICP) $ 11.22 0.52%
aptos
Aptos (APT) $ 9.61 1.35%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.514868 2.39%
crypto-com-chain
Cronos (CRO) $ 0.157713 5.19%
vechain
VeChain (VET) $ 0.051994 1.78%
mantle
Mantle (MNT) $ 1.24 0.44%
ethereum-classic
Ethereum Classic (ETC) $ 27.30 2.96%
render-token
Render (RENDER) $ 7.54 4.05%
bittensor
Bittensor (TAO) $ 503.04 1.19%
whitebit
WhiteBIT Coin (WBT) $ 24.99 0.65%
monero
Monero (XMR) $ 194.30 0.96%
mantra-dao
MANTRA (OM) $ 3.76 0.55%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.35 3.38%
dai
Dai (DAI) $ 1.00 0.07%
arbitrum
Arbitrum (ARB) $ 0.799613 2.55%
filecoin
Filecoin (FIL) $ 5.30 2.97%