Mortgage Refinancing Hits 22-Year Low as 30-Year Mortgage Rates Rise Above 7 Percent
Mortgage rates jumped again last week after the Federal Reserve reaffirmed its aggressive policy to raise interest rates to fight inflation.
The average interest rate for a 30-year fixed-rate mortgages for conforming loan balances rose to 6.52 percent from 6.25 percent.
Points increased from 0.71 to 1.15, including the origination fee, for 80 percent of loan-to-value ratio loans, while the effective rate also increased, reaching its highest level since 2008.
Meanwhile, the 30-year fixed-rate mortgage rate jumped over the 7 percent mark to 7.08 percent, for the highest rate since the Great Recession.
“The U.S. 10-year rate just crossed above 4 percent. Mortgage rates comfortably exceed 7 percent. We are now in new financial territory,” said Larry Summers, former U.S. Treasury Secretary, in a statement….