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Mortgage rates hit 5.81%, highest level since November 2008
Housing market facing a ‘perfect storm’ amid inflation, higher mortgage rates: NAHB CEO
Jerry Howard, the CEO of the National Association of Home Builders, provides insight into the housing market amid economic challenges.
Homebuyers feeling squeezed in the current real estate market are in for more pain as the Federal Reserve's efforts to tame scorching-hot inflation are pushing mortgage rates toward 6%.
According to Freddie Mac, the average rate on a 30-year fixed mortgage is 5.81%, the highest level since November 2008 and up 3.02% from a year ago. Last week, the average 30-year fixed-rate mortgage hit 5.78%, the largest weekly increase since 1987.
Meanwhile, the average rates for a 15-year fixed-rate mortgage and 5-year Treasury-indexed hybrid adjustable-rate mortgage are now 4.92% and 4.4%, respectively.
On Thursday, the Mortgage Bankers Association reported that the national median mortgage payment was $1,897 in May, up from $1,889 in April and $1,736 in March. Payments have increased $513, or 37.1%, in the first five months of the year.