Mortgages Hit Three-Year High: How Much More a Typical House Now Costs
Summary
Mortgage interest rates for 30-year fixed loans in the U.S. have increased to 7.28%, the highest in almost three years. This rise is mainly caused by higher 10-year Treasury yields linked to energy costs and economic factors, making monthly home payments more expensive for buyers.Key Facts
- The average 30-year fixed mortgage rate reached 7.28% by late September, up from 7.03% the previous week.
- Mortgage rates have increased six weeks in a row, climbing nearly 1% over the past year.
- Higher mortgage rates have raised monthly payments by more than $200 for typical homebuyers.
- Rising 10-year Treasury yields, which influence borrowing costs, hit their highest level since 2002 due to energy price spikes linked to the Iran war and increased corporate borrowing.
- Inflation measured by the personal consumption expenditures (PCE) index showed some cooling, potentially easing rates slightly.
- The U.S. added fewer jobs than expected in September, signaling the economy is not overheating.
- The median price for a typical U.S. home in August was $424,500.
- Homebuyers putting 20% down now pay about $213 more each month than a year ago due to higher mortgage rates.
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