Lawrence Summers, the former Secretary of Treasury under the Clinton administration, has warned that home mortgage rates are set to climb even higher.
“The U.S. 10-year rate just crossed above 4 percent. Mortgage rates comfortably exceed 7 percent. We are now in new financial territory,” Summers noted in a tweet on Sept. 28. The average contract rate on a 30-year fixed-rate mortgage rose by 27 basis points, to 6.52 percent for the week ended Sept. 23, according to the Mortgage Bankers Association (MBA).
This is the mortgage’s highest interest rate since mid-2008. The rise of mortgage rates had briefly paused in August, but since have climbed by more than a percentage point in the past six weeks….