Mortgage rates hit 5.81%, highest level since November 2008

Posted 48 days ago

From WWW.FOXBUSINESS.COM

Homebuyers feeling squeezed in the current real estate market are in for more pain as the Federal Reserve's efforts to tame scorching-hot inflation are pushing mortgage rates toward 6%.

According to Freddie Mac, the average rate on a 30-year fixed mortgage is 5.81%, the highest level since November 2008 and up 3.02% from a year ago. Last week, the average 30-year fixed-rate mortgage hit 5.78%, the largest weekly increase since 1987.

Meanwhile, the average rates for a 15-year fixed-rate mortgage and 5-year Treasury-indexed hybrid adjustable-rate mortgage are now 4.92% and 4.4%, respectively.

On Thursday, the Mortgage Bankers Association reported that the national median mortgage payment was $1,897 in May, up from $1,889 in April and $1,736 in March. Payments have increased $513, or 37.1%, in the first five months of the year.

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The latest data comes as existing home sales fell to a seasonally adjusted annual rate of 5.41 million in May, down 3.4% from the previous month. On a year-over-year basis, existing home sales receded 8.6%. The median existing home price for all housing types in May was $407,600, up 14.8% from May 2021, as prices increased in all regions.

"Fixed mortgage rates have increased by more than two full percentage points since the beginning of the year," Freddie Mac Chief Economist Sam Khater said in a statement. "The combination of rising rates and h... (Read more)