Washington – Average long-term mortgage rates have skyrocketed this week, with benchmark 30-year loans surpassing 3% again.
Mortgage buyer Freddie Mac reported Thursday that the average 30-year mortgage rate rose from 2.99% last week to 3.05%. This is the highest level since April, when it peaked at 3.18%. Last year’s key rate this time was 2.81%.
Interest rates on 15-year loans, a popular option for homeowners to refinance their mortgages, rose from 2.23% last week to 2.30%.
The rise in mortgage rates occurred as inflationary pressure continued as the coronavirus pandemic prolonged. The government reported Wednesday that retail-level inflation rose 0.4% in September and the consumer price index rose 5.4% in the last 12 months. This is comparable to the fastest pace since 2008.
This year’s surge in inflation reflects rising prices for food, energy and many other furniture to cars as the pandemic disrupts the supply chain and demand exceeds supply.
The number of Americans applying for unemployment benefits has fallen to the lowest level since the pandemic began early last year. This shows that the employment market is still improving, despite the slowdown in employment in the last two months. According to the Ministry of Labor, unemployed claims fell by 36,000 last week to 293,000, the second consecutive year of decline.
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Average mortgage rates in the United States will skyrocket. 3.05% 30-year loan
Source link Average mortgage rates in the United States will skyrocket. 3.05% 30-year loan