Mortgage Rates Soar to Highest Level Since 2008 at 5.78%

The Federal Reserve Rose rates by 75 basis points yesterday, the largest amount since 1994. The effect of interest rates is being felt hard by homebuyers. The average rate on a 30-year, fixed-rate mortgage rose to 5.78%, mortgage-finance giant Freddie Mac said Thursday. This is the highest level since November 2008 and well above the 3.11% recorded near the start of the year.

in just one week it has risen over half a percent. Last week, Freddie Mac reported an average mortgage rate of 5.23%. The surge was the largest weekly increase since 1987.

The benchmark 10-year yield has surged in recent months hitting its highest level in over ten years, Freddie Mac’s weekly average is based on its survey of lenders. The 5.78% figure was recorded before the central bank’s Wednesday announcement. We are already seeing quotes over 6% by lenders

Source: Freddie Mac

From The TradersCommunity News Desk