Mortgage rates blow past 7% for the first time in two decades
CBSN
The average long-term U.S. mortgage rate topped 7% for the first time in more than two decades this week, a result of the Federal Reserve's aggressive rate hikes intended to tame inflation not seen in some 40 years.
Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate jumped to 7.08% from 6.94% last week. The last time the average rate was above 7% was April 2002, a time when the U.S. was still reeling from the Sept. 11 terrorist attacks, but six years away from the 2008 housing market collapse that triggered the Great Recession.
Other measures put borrowing costs for a home loan even higher. The Mortgage Bankers Association said Wednesday that the rate on a conventional 30-year mortgage rose this week to 7.16%. Last year at this time, rates on a 30-year mortgage averaged 3.14%.
