Average long-term US mortgage rates rise this week to 6.94%

Oct 20, 2022, 7:00 AM | Updated: Oct 21, 2022, 4:07 am

WASHINGTON (AP) — Average long-term U.S. mortgage rates inched up this week ahead of another expected rate increase by the Federal Reserve when it meets early next month.

Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate ticked up this week to 6.94% from 6.92% last week. Last year at this time, the rate was 3.09%.

The average rate on 15-year, fixed-rate mortgages, popular among those looking to refinance their homes, jumped to 6.23% from 6.09% last week. Last week it climbed over 6% for the first time since the housing market crash of 2008. One year ago, the 15-year rate was 2.33%.

The Fed’s aggressive action has stalled a housing sector that — outside of the onset of the pandemic — has been hot for years.

The National Association of Realtors said Thursday that sales of previously occupied U.S. homes fell in September for the eighth month in a row as house hunters faced sharply higher mortgage rates, bloated home prices and a tight supply of properties on the market.

Sales fell 23.8% from September last year, and are now at the slowest annual pace since September 2012, excluding the steep slowdown in sales that occurred in May 2020 near the start of the pandemic.

Freddie Mac says that for a typical mortgage, borrowers who locked in at the higher end of the rate range during the past year would pay several hundred dollars more than borrowers who signed contracts at the lower end of the range.

Late in September, the Federal Reserve bumped its benchmark borrowing rate by another three-quarters of a point in an effort to constrain the economy and tame inflation. It was the Fed’s fifth increase this year and third consecutive 0.75 percentage point increase. The Fed’s next two-day policy meeting opens Nov. 1, with most economists expecting another big three-quarters of a point hike.

Despite the Fed’s swift and heavy rate increases, inflation has hardly budged from 40-year highs and the labor market remains tight.

Earlier this month, the government reported that America’s employers slowed their hiring in September but still added 263,000 jobs. The unemployment rate fell to 3.5%, matching a half-century low.

Another report from the government last week showed that consumer inflation remained much too high at 8.2%. Combined with the 8.5% inflation at the wholesale level, most economists expect another big increase when the Fed meets in early November.

By raising borrowing rates, the Fed makes it costlier to take out a mortgage and an auto or business loan. Consumers and businesses then presumably borrow and spend less, cooling the economy and slowing inflation.

Mortgage rates don’t necessarily mirror the Fed’s rate increases, but tend to track the yield on the 10-year Treasury note. That’s influenced by a variety of factors, including investors’ expectations for future inflation and global demand for U.S. Treasurys.

Despite a still-robust job market, the government estimates that the U.S. economy shrank at a 0.6% annual rate in the second quarter that ended in June, the second straight quarterly contraction.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

A worker inspects solar panels at Premier Energies Solar on the outskirts of Hyderabad, India, Wedn...
Associated Press

Taxes slow India’s solar power rollout but boost manufacture

BENGALURU, India (AP) — In May last year Fortum India, a subsidiary of a Finnish solar developer, won the bid for a solar power project in the state of Gujarat. The project was due to be completed three months ago and would have generated enough electricity for 200,000 homes. But like many other solar power […]
21 hours ago
Associated Press

3 kids taken in Nebraska carjacking found with frostbite

GRAND ISLAND, Neb. (AP) — Three young children were being treated for frostbite in Nebraska Sunday after police said two suspects stole an SUV while they were inside. Around 3 a.m. Sunday, when temperatures were around 0 degrees, a man reported that his 2012 Chevrolet Traverse had been stolen with his three children inside, said […]
21 hours ago
FILE - Netherland's Prime Minister Mark Rutte, left, speaks with U.S. President Joe Biden during a ...
Associated Press

Source: Dutch, Japanese join US limits on chip tech to China

WASHINGTON (AP) — Japan and the Netherlands have agreed to a deal with the U.S. to restrict China’s access to materials used to make advanced computer chips, a person familiar with the agreement told The Associated Press on Sunday. The person declined to be identified because the deal hasn’t yet been formally announced. It’s unclear […]
21 hours ago
Associated Press

Missouri mom convicted of killing her infant twins

ST. LOUIS (AP) — A Missouri mother who reported that her infant twins were stillborn has been convicted of manslaughter. Maya Caston, 28, was convicted Friday of second-degree involuntary manslaughter and two counts of child endangerment. The St. Louis Post-Dispatch reports that jury found her guilty of lesser charges instead of convicting her of second-degree […]
21 hours ago
FILE - Annie Wersching arrives at the FOX Winter All-Star Party in Pasadena, Calif., on Jan. 11, 20...
Associated Press

’24,’ ‘Runaways’ actor Annie Wersching has died at 45

Actor Annie Wersching, best known for playing FBI agent Renee Walker in the series “24” and providing the voice for Tess in the video game “The Last of Us,” has died. She was 45. Wersching passed away Sunday morning in Los Angeles following a battle with cancer, her publicist told The Associated Press. The type […]
21 hours ago
Associated Press

Baby girl found abandoned in Florida an hour after birth

MULBERRY, Fla. (AP) — Florida authorities found a newborn girl wrapped in a blanket and still attached to a placenta on a hill outside a trailer park early Saturday morning. Polk County deputies responding to a call about a baby crying outside near Mulberry, east of Tampa, found the girl about an hour after she […]
21 hours ago

Sponsored Articles

(Pexels Photo)...

Sports gambling can be fun for adults, but it’s a dangerous game for children

While adults may find that sports gambling is a way to enhance the experience with more than just fandom on the line, it can be a dangerous proposition if children get involved in the activity.
...
Quantum Fiber

Stream 4K and more with powerful, high-speed fiber internet

Picking which streaming services to subscribe to are difficult choices, and there is no room for internet that cannot handle increased demands.
...
Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
Average long-term US mortgage rates rise this week to 6.94%