Average Rates Hit Over 20-Year High
Mortgage rates hit their highest level in more than 20 years last week, breaking 7% on average and adding extra weight to Americans’ heavy housing burden.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.09%, up from 6.96%. A year ago at this time, the 30-year FRM averaged 5.13%.
The 15-year fixed-rate mortgage also increased, up to 6.46% from 6.34%. A year ago, it averaged 4.55%.
“The economy continues to do better than expected and the 10-year Treasury yield has moved up, causing mortgage rates to climb,” said Sam Khater, Freddie Mac’s Chief Economist.
These are the highest rates since April of 2002. In October and November of last year, rates reached 7.08%.
“The last time…