The average rate for a 30-year fixed mortgage topped 6% this week, the highest level since 2008 and more than twice what it was a year ago.

Freddie Mac said Thursday that its latest Primary Mortgage Market Survey shows the average rate for the benchmark 30-year fixed mortgage rose again this week to 6.02%%, up from last week's reading of 5.89%.

Home for sale

A home for sale is seen in Orlando, Fla. ((AP Photo/John Raoux, File) / AP Newsroom)

At this time last year, 30-year fixed-rate products averaged 2.86%.

The rate for a 15-year fixed note also rose, averaging 5.21% after coming in at 5.16% last week. That is also more than double the average rate at this time last year when 15-year products were at 2.12%.

"Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding six percent for the first time since late 2008," said Sam Khater, Freddie Mac’s chief economist. "Although the increase in rates will continue to dampen demand and put downward pressure on home prices, inventory remains inadequate. This indicates that while home price declines will likely continue, they should not be large."

This is a developing story. Please check back for updates.

Source Link:
https://www.foxbusiness.com/economy/mortgage-rates-climb-above-6-first-time-since-2008

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