US long-term mortgage rates up for 6th week; 30-year at 6.7%

Sep 28, 2022, 8:21 PM | Updated: Sep 29, 2022, 8:37 am
For sale by owner sign is displayed outside home in Northbrook, Ill., Wednesday, Sept. 21, 2022. Av...

For sale by owner sign is displayed outside home in Northbrook, Ill., Wednesday, Sept. 21, 2022. Average long-term U.S. mortgage rates rose this week for the sixth straight week, marking new highs not seen in 15 years, before a crash in the housing market triggered the Great Recession, mortgage buyer Freddie Mac reported Thursday, Sept. 29, 2022. (AP Photo/Nam Y. Huh)

(AP Photo/Nam Y. Huh)

WASHINGTON (AP) — Average long-term U.S. mortgage rates rose this week for the sixth straight week, marking new highs not seen in 15 years, before a crash in the housing market triggered the Great Recession.

Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate climbed to 6.70% from 6.29% last week. By contrast, the rate stood at 3.01% a year ago.

The average rate on 15-year, fixed-rate mortgages, popular among those looking to refinance their homes, jumped to 5.96% from 5.44% last week.

Rapidly rising mortgage rates threaten to sideline even more homebuyers after more than doubling in 2022. Last year, prospective homebuyers were looking at rates well below 3%.

Freddie Mac noted that for a typical mortgage amount, a borrower who locked in at the higher end of the range of weekly rates over the past year would pay several hundred dollars more than a borrower who locked in at the lower end of the range.

Last week, the Federal Reserve bumped its benchmark borrowing rate by another three-quarters of a point in an effort to constrain the economy, its fifth increase this year and third consecutive 0.75 percentage point increase.

Perhaps nowhere else is the effect of the Fed’s action more apparent than the housing sector. Existing home sales have been in decline for seven straight months as the rising cost to borrow money puts homes out of reach for more people.

The government reported Thursday that the U.S. economy, battered by surging consumer prices and rising interest rates, shrank at a 0.6% annual rate from April through June. That was unchanged from the previous estimate for the second quarter.

Fed officials forecast that they will further raise their benchmark rate to roughly 4.4% by year’s end, a full point higher than they envisioned as recently as June. And they expect to raise the rate again next year, to about 4.6%. That would be the highest level since 2007.

By raising borrowing rates, the Fed makes it costlier to take out a mortgage and an auto or business loan. Consumers and businesses then presumably borrow and spend less, cooling the economy and slowing inflation.

Mortgage rates don’t necessarily mirror the Fed’s rate increases, but tend to track the yield on the 10-year Treasury note. That’s influenced by a variety of factors, including investors’ expectations for future inflation and global demand for U.S. Treasurys.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

The Kid Laroi appears at the 64th Annual Grammy Awards in Las Vegas on April 3, 2022, left, and Jus...
Associated Press

Apple Music reveals top music in 2020 and listener charts

NEW YORK (AP) — “Stay,” the smash hit by The Kid Laroi and Justin Bieber topped Apple Music’s global song chart in 2022 as the giant music streamer released its end-of-year lists and provided listeners with data on their own most listened-to tunes. “Stay,” which stayed atop the Billboard Hot 100 for seven weeks this […]
1 day ago
Associated Press

US bat species devastated by fungus now listed as endangered

TRAVERSE CITY, Mich. (AP) — The Biden administration declared the northern long-eared bat endangered on Tuesday in a last-ditch effort to save a species driven to the brink of extinction by white-nose syndrome, a fungal disease. “White-nose syndrome is decimating cave-dwelling bat species like the northern long-eared bat at unprecedented rates,” said Martha Williams, director […]
1 day ago
Pope Francis walks past a Vatican Swiss Guard as he arrives to meet with members of the Italian Sch...
Associated Press

Russia protests pope comments as Vatican seeks to mediate

ROME (AP) — Russia has lodged a formal protest with the Vatican over Pope Francis’ latest condemnation of atrocities in Ukraine, in which the pontiff blamed most of the cruelty on Chechens and other minorities in an apparent effort to spare ethnic Russian troops from criticism. The Kremlin’s ambassador to the Holy See, Alexander Avdeev, […]
1 day ago
Associated Press

Ethiopia offers no date for end to blackout in Tigray region

NAIROBI, Kenya (AP) — There is “no timeline” for restoring internet access to Ethiopia’s embattled Tigray region, a senior government official said Tuesday. The restoration of Tigray’s internet service will be carried alongside the resumption of its phone and electricity services, though no date has been set for those goals, Ethiopia’s Minister for Innovation and […]
1 day ago
Ohio State University president Kristina Johnson speaks Jan. 21, 2022 in Newark, Ohio. Johnson says...
Associated Press

Ohio State leader Johnson resigning halfway through contract

COLUMBUS, Ohio (AP) — Ohio State University President Kristina Johnson says she’ll step down when the school year ends in May, resigning after less than three years at the helm of one of the nation’s largest public universities. The 65-year-old Johnson thanked Ohio State students and employees in a letter Monday but did not explain […]
1 day ago
Associated Press

Unknown aircraft targets Wagner base in C. African Republic

BANGUI, Central African Republic (AP) — Authorities in Central African Republic have opened an investigation after a low-flying fighter jet dropped explosives near a base for Russian mercenaries working with the country’s military. The attack took place in the early hours of Monday at the Cotenaf base in Bossangoa, where witnesses said both the base […]
1 day ago

Sponsored Articles

SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Swedish Cyberknife 900x506...

June is Men’s Health Month: Here’s Why It’s Important To Speak About Your Health

According to the Centers for Disease Control and Prevention, men in the United States, on average, die five years earlier than women.
US long-term mortgage rates up for 6th week; 30-year at 6.7%