US 30-Year Mortgage Rate Top 7.5% Since 2000

Bloomberg News reports that last week, the US mortgage rates topped 7.5% since November 2000 for the first time. This is true for the applications for home purchases, which dwindled to a multi-decade low. This led to a dent in the expectations of a higher interest rate in the housing market.

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30-Year Mortgage Rate

The 30-year fixed mortgage rate surged to 7.5% during the week that ended on September 29^th, Wednesday as stated by the Mortgage Bankers Association. This is the highest level attained since November 2000. It also marks the 9^th consecutive week when the rates exceeded 7%.

According to Joel Kan, the deputy chief economist associated with MBA, mortgage rates have continued to increase in the past week. This occurred as the markets managed to digest the recent upswing recorded in the Treasury yields. Due to this scenario, mortgage applications were halted, plunging to the lowest since 1996. It fell 6% as compared to the last week.

What is The State of the US Treasury Yields of Late?

Yields on the longer-term US Treasuries have soared as investors had to adjust to the anticipations that the Federal Reserve might keep the rates at a higher mark for longer.

Bloomberg News reports that the MBA survey conducted every week since 1990 uses the results from mortgage bankers, thrifts, and commercial banks. The data covers 75% of the residential retail mortgage applications in the United States.

What is the Contract Rate on a 30-Year Mortgage Rate (Fixed)?

The contract rate for a 30-year fixed mortgage rate surged by 12 basis points. This is the most since mid-August to 7.53% in the week that concluded September 29^th. It is as per data released by Mortgage Bankers Association Wednesday. The applications related to the index for home purchase dropped 5.7% to 136.6. This figure is the lowest since 1995.

The overall measure for the mortgage applications, including refinancing, plunged 6% to the weakest since 1996. The cost of borrowing continues to soar this week. As per frequent updates, Tuesday’s 30-year fixed mortgage rate was 7.72%.