Average long-term mortgage rate jumps above 7% this week

[turbinetree]

By MATT OTT and ALEX VEIGA
15 minutes ago



WASHINGTON (AP) — The average long-term U.S. mortgage rate topped 7% for the first time in more than two decades this week, a result of the Federal Reserve’s aggressive rate hikes intended to tame inflation not seen in some 40 years.

Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate jumped to 7.08% from 6.94% last week. The last time the average rate was above 7% was April 2002, a time when the U.S. was still reeling from the Sept. 11 terrorist attacks, but six years away from the 2008 housing market collapse that triggered the Great Recession.

Last year at this time, rates on a 30-year mortgage averaged 3.14%.

https://apnews.com/article/inflation-business-economy-prices-mortgages-b3d20020ecddf7a13bd62fb7b5ed7c0c?utm_source=homepage&utm_medium=TopNews&utm_campaign=position_06

-snip-
The Fed is expected to raise its benchmark rate another three-quarters of a point when it meets next week. Despite the rate increases, inflation has hardly budged from 40-year highs, above 8% at both the consumer and wholesale level.

When corporate greed is the driving force on price gouging, supply chain issues, to sustain the corporate greed, the average consumer should not be the ones paying the price....when a CEO on average like Amazon makes 58:1 in wages compared to the worker, and some CEO's are making over 900 % in a wage compared to the average worker.....there is something really wrong with this picture....and don't get me going on US oil companies exporting oil.....exporting about 30% of its oil.....

[bigtree]

1. well, housing prices have dropped

...making homes more affordable right now.

Inflation could fall back to the Fed's 2% target quicker than the market expects as housing prices are primed for a 20% decline, chief economist says

Home prices could crash 20% as housing supply begins to rise, according to ING Economics.
But a silver lining of such a steep decline in home prices is that inflation would fall quicker than expected.
A swift fall in shelter CPI "could help to get inflation down to 2% far quicker than many in the market expect," ING said.
https://markets.businessinsider.com/news/stocks/housing-market-crash-home-prices-help-inflation-fall-feds-target-2022-10

[Zambero]

3. Boise home values are down 15-20%

The housing market here has been described as the most over-valued in the country. The good news is that skyrocketing rent costs have begun to decrease.

[jimfields33]

2. I feel bad for those with variable interest rates.

Can you imagine how much more their monthly mortgage is? I’m glad I have a fixed rate.