Economic Report: Mortgage rates surge to a 20-year high, leading to steep decline in home sales

by | Oct 23, 2022 | Stock Market

The numbers: Mortgage rates have risen to the highest level in 20 years. The 30-year fixed-rate mortgage averaged 6.94% as of October 20, according to data released by Freddie Mac on Thursday.  That’s the highest since April 2002.

Rates are up 2 basis points from the previous week — one basis point is equal to one hundredth of a percentage point, or 1% of 1%.  Last week, the 30-year was at 6.92%. Last year, the 30-year was averaging at 3.09% It’s worth noting that Mortgage News Daily, which follows day-to-day movement in mortgage rates, is noting that the 30-year is at 7.22%. The average rate on the 15-year mortgage rose to 6.23%.  “Mortgage rates slowed their upward trajectory this week,” Sam Khater, chief economist at Freddie Mac
FMCC,
-1.75%,
said in a statement. “The 30-year fixed-rate mortgage continues to remain just shy of 7% and is adversely impacting the housing market in the form of declining demand,” he added.

“‘The 30-year fixed-rate mortgage continues to remain just shy of 7% and is adversely impacting the housing market in the form of declining demand.’”

— Sam Khater, chief economist at Freddie Mac

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