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Mortgage rates climb to 5.66% after Fed pledges 'forceful' action on inflation
Soaring inflation, higher mortgage rates slowing home sales: NAHB
National Association of Home Builders CEO Jerry Howard warns that builder confidence in the market, for newly built single-family homes, posting its sixth straight monthly decline in June is a ‘sign of a real slowdown.’
U.S. mortgage rates rose to their highest level in two months this week after Federal Reserve Chairman Jerome Powell promised to deliver "forceful" action on inflation that he warned would cause economic "pain."
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan this week rose to 5.66% from 5.55% for the week ending Sept. 1. The rate is well above the 2.87% recorded just one year ago.
The average rate on a 15-year mortgage – which is more popular among homeowners who choose to refinance – climbed to 4.98%, up from last week's 4.85. By comparison, the average rate on a 15-year mortgage was just 2.18% one year ago.
"The market's renewed perception of a more aggressive monetary policy stance has driven mortgage rates up to almost double what they were a year ago," said Sam Khater, Freddie Mac's chief economist.
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