Average long-term US mortgage rates rose this week for the sixth straight week, marking new highs not seen in 15 years, before a crash in the housing market triggered the Great Recession. Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate climbed to 6.70% from 6.29% last week. By contrast, the rate stood at 3.01% a year ago, reports the AP.
The average rate on 15-year, fixed-rate mortgages, popular among those looking to refinance their homes, jumped to 5.96% from 5.44% last week. Rapidly rising mortgage rates threaten to sideline even more homebuyers after more than doubling in 2022. Last year, prospective homebuyers were looking at rates well below 3%. MarketWatch cites a tweet from Bloomberg chief economist Michael McDonough, who said a buyer who put 20% down and wanted a $2,500 monthly mortgage payment could have purchased a $758,000 home in early 2021; at these rates, that would translate to a $476,000 home. (Read more mortgage rates stories.)