Mortgage Rates Rise to 6.7%, Highest Since 2007

[Yo_Mama_Been_Loggin]

Source: Wall Street Journal

Mortgage rates rose to their highest level in more than 15 years, a new postcrisis high that adds pressure to the already cooling U.S. housing market.

The average rate on a 30-year fixed mortgage climbed to 6.7%, according to a survey of lenders released Thursday by Freddie Mac. lt was the highest rate since July 2007. A year ago, rates were 3.01%.

The surge in mortgage rates follows a series of interest-rate increases from the Federal Reserve. The central bank has moved aggressively to try to cool the highest inflation in decades, raising its benchmark rate five times this year. Officials have indicated more increases are likely in the months ahead.

Mortgage rates usually rise or fall in tandem with the benchmark 10-year Treasury yield, not the rate set by the Fed, but the 10-year yield is heavily influenced by expectations for Fed rates.



Read more: https://www.msn.com/en-us/money/realestate/mortgage-rates-rise-to-6-7-highest-since-2007/ar-AA12oC53

[Historic NY]

1. Its not slowing the housing market..

A average median 3 bedroom house in Orange County NY is now 410k. I think that I might start taking cash offers 3br, 1 3/4 bath,solid cherry eat in kitchen, deck, heavily insulated, recent exterior updates and landscaping finished tavern in basement, 24x24 garage/office/in-law building, wooded rear church-cemetery property.

They call now wanting to buy.

[Fiendish Thingy]

7. It's definitely slowing the housing market

Perhaps Just not yet in your neck of the woods.

The first thing to change is the volume of sales; then listings drop below average because sellers are waiting on the sidelines for conditions to improve. When that doesn’t happen, listings begin to rise, because regardless of interest rates, some people have to sell because of work, divorce or death.

Only then do price drops begin to accelerate, as the majority of buyers can’t qualify for higher interest rate mortgages at the current inflated prices. Some sellers will have to capitulate and lower their prices in order to close the sale. Once that happens, other panicked sellers will list, fearing they will lose money if they wait any longer.

Barring unforeseen circumstances, It will be a buyer’s market nearly everywhere by next spring/summer.

[Historic NY]

14. Hudson Valley NY hot market since Covid and even before

prices don't seem to phase them. Home sales are up 12.8% this year. One bedroom seem to be outselling everthing except 5+ Bedrooms. All 5 surrounding counties are way up from the previous year also.

Time will tell

[Fiendish Thingy]

19. When you say "sales up 12.8%" do you mean prices or volume? Nt

[Historic NY]

20. sale price

[Fiendish Thingy]

21. Price is a lagging indicator; volume will give you a better picture of the current market. Nt

[newdayneeded]

22. I'm noticing houses are now on

for days and even weeks before an offer. Plus, only 1 in 4 houses are getting up bids. The market has definitely cooled.

[CountAllVotes]

2. That was the rate of a CalVet loan in 2002

That is what the first (and only) house I got into had on the mortgage.

The house has tripled in value since that time and yes, I own it now.

Its no mansion but it is a roof over my head and I'm glad to have it.

Anything less than 8% interest was a "deal" at that time.

[RedSpartan]

3. I refinanced at 2.99% for a 30 year fixed last year.

I'm never moving.

[Stuart G]

4. K and R...Thanks for posting.

[MustBeTheBooz]

5. So back to realistic normals... 'Bout time. n/t

[honest.abe]

6. That's going to be a hard hit on the housing market.

Unfortunately we were planning to sell and move within the next few months.

[Fiendish Thingy]

8. I expect a buyer's market nearly everywhere by spring/summer 2023

The Fed is expected to continue hiking rates until at least mid-2023.

[LymphocyteLover]

9. if the housing market was slowing, you'd think prices would go down

[honest.abe]

11. Prices are coming down in some areas.

We are planning to move to a suburb north of Atlanta and we have been tracking prices the past few months and definitely prices are dropping significantly in the area we are looking. I would say about 5-10%. Not really enough, however, to compensate for higher interest rates.

[live love laugh]

12. Sabotage. Powell says he's raising rates thru '25.

Biden’s doing too well apparently.

[honest.abe]

15. That's crazy.

I really dont get the strategy of trashing the stock market, killing the housing market and forcing a recession to lower the price of tomatoes.

[live love laugh]

16. I think it's political. It coincides with the election cycle.

[honest.abe]

17. If so Biden needs to replace Powell with someone apolitical.

[Turbineguy]

13. Interesting that after that

liar loans were being written to usher in the economic collapse.

[LymphocyteLover]

18. after that liar, loans..." or "after that, liar loans..."?

[madville]

23. I've had 5 different mortgages

Anywhere from 3 to 8.5% over the last 30 years. 5-6% should be considered about normal in my opinion, people got used to and expected low rates the last 5 years or so so it feels like that should be the norm at the moment, it will all adjust.