Mortgage rates surpass 7% for the first time in 20 years

The average U.S. 30-year mortgage rate surpassed 7% for the first time in two decades, mortgage giant Freddie Mac said Thursday.

The average U.S. 30-year mortgage rate surpassed 7% for the first time in two decades, mortgage giant Freddie Mac said Thursday.

As of Oct. 27, the average rate hit 7.08%, the highest level since April 2002 and one that Freddie Mac said is "leading to greater stagnation in the housing market."

"As inflation endures, consumers are seeing higher costs at every turn, causing further declines in consumer confidence this month," it said. "In fact, many potential homebuyers are choosing to wait and see where the housing market will end up, pushing demand and home prices further downward."

Home price gains decelerated at a record pace in August according to the S&P CoreLogic Case-Shiller Home Price Index, cooling from 15.6% to 13% on an annual basis. But home prices are still climbing, having increased from $449,300 to $454,900 in the third quarter, according to U.S. census data.

Meanwhile, the national median mortgage payment was $1,941 in September, up from $1,839 in August and an increase from $1,844 in July, according to the Mortgage Bankers Association. It was up by $558 in the first nine months of the year, equal to a 40.4% increase, the association said.

https://www.nbcnews.com/business/economy/mortgage-rates-7-percent-first-time-20-years-rcna54321

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