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| Economy |
| US mortgage rates hit 6.02 percent, a 14-year high as inflation soars |
| 2022-09-17 |
| [BBC] The cost of a typical mortgage in the US has hit its highest level since the 2008 financial crisis as the country battles to rein in soaring prices. The average interest rate on a 30-year mortgage hit 6.02% this week, more than double what it was a year ago. For families hoping to buy a home, the moves compound affordability problems. The rise comes as the US central bank aggressively raises rates in an effort to reduce the pressures driving up inflation across the economy. US consumer prices rose by 8.3% in the year to August, the fastest rate in almost 40 years, the Labor Department said this week. The figure was higher than expected, raising expectations that the Federal Reserve will continue to raise interest rates aggressively. Mortgage rates have spiked in anticipation of the moves. "Rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding 6% for the first time since late 2008," said Sam Khater, chief economist at Freddie Mac, the government-sponsored mortgage firm that released the interest rate data. |
| Posted by:Besoeker |
| #5 Keep an eye on certificates of deposit. One year CD's are now approaching 3.5%. |
| Posted by: Besoeker 2022-09-17 17:21 |
| #4 When interest rates go up, prices drop, keeping the total monthly payment about the same. |
| Posted by: trailing wife 2022-09-17 16:47 |
| #3 I got my mortgage in 2009 at 4.6%. I was in the right place at the right time. |
| Posted by: Deacon Blues 2022-09-17 12:39 |
| #2 During our entire lifetime, my wife and I would have killed for a fixed rate mortgage at 6.02%. We never came close to a rate that low. |
| Posted by: Tom 2022-09-17 11:01 |
| #1 Took my mortgage in '94 it was 10% with significant down payments. |
| Posted by: Procopius2k 2022-09-17 07:44 |