Mortgage rates are at their highest point since the Great Recession as housing affordability continues to decline, according to Freddie Mac (OTC:FMCC) data.
The 30 year fixed increased from 5.66 percent to 5.89 percent. The long-term rate hasn’t been this high since November 2008, shortly after the Great Recession was triggered by the collapse of the housing market.
In 2021, the 30 year fixed was 2.88 percent. The typical rate on 15 year fixed mortgages increased from 4.98 percent to 5.16 percent last week. The rate at this time last year was 2.19 percent.
Rates decreased in July and the first few days of August as recession fears mounted. Rates reversed higher after hawkish remarks made by Fed Chairman Jerome Powell at the central bank’s conference in Jackson Hole last month; investors’ attention was once again drawn to the Fed’s efforts to bring inflation down which is floating around 40 year highs….