U.S. mortgage rates jumped to 5.78 percent in the largest one-week increase since 1987, reported Freddie Mac on June 16, after the Federal Reserve hiked interest rates the day prior, adding further pressure on homebuyers and slowing down the already weak housing market.
The average for a 30-year loan jumped to 5.78 percent by more than half a percentage point, up from 5.23 percent last week, the highest it has been since November 2008 during the housing crisis.
The average rate on 15-year, fixed-rate mortgages, popular among those refinancing their homes, rose to 4.81 percent from 4.38 percent last week and 2.24 percent, exactly a year ago. The pandemic-spurred housing bubble is falling from the massive boost it received two years ago, when many Americans working from home during the pandemic took advantage of low mortgage rates to buy housing, driving prices to record highs….