Mortgage rates touch 8% for the first time since 2000 – CBS News, 2023/10/19
Mortgage rates hit 8% on this week, the highest level since August 2000 and deepening an affordability crisis for homebuyers.
The average rate for a 30-year loan touched 8% on Wednesday, according to Mortgage News Daily, which surveys a range of lenders to determine current home loan rates.
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The national median home price was $430,000 last month, up from $400,000 in January, according to Realtor.com.
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Higher mortgage rates have contributed to the decline in mortgage applications and home sales, according to data from the MBA and the National Association of Realtors (NAR). Existing home sales fell 2% in September, NAR said on Thursday. Sales have dipped because there’s limited housing inventory and what’s on the market is mostly unaffordable, said NAR Chief Economist Lawrence Yun.
Mortgage rates have jumped this year partly because the Federal Reserve raised its benchmark rate several times in an attempt to cool inflation.
The ultra low interest rates couldn’t last forever because it was artificial and not a result of normal market forces.
The problem is the economy is slowly being trashed by numerous factors and many people don’t have the money saved or don’t bring in enough income to keep up with the interest rates.
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