Mortgage Rates on the Rise, Adding to Home Affordability Crisis
The housing market is facing yet another challenge as mortgage rates have increased, further impacting the already existing home affordability crisis. According to Freddie Mac’s latest survey, the average rate on a 30-year fixed mortgage has risen to 7.17% from 7.1% just last week. This is a significant increase from one year ago when the rate on a 30-year loan was 6.43%.
In addition, the average rate on a 15-year fixed mortgage has also seen an increase, rising to 6.44% from 6.39% last week. Compare this to one year ago when the rate on the 15-year fixed note averaged 5.71%. These rising rates are making it even more challenging for potential homebuyers to afford a new home.
The spike in mortgage rates is concerning for both current homeowners looking to refinance and prospective buyers looking to enter the market. As rates continue to climb, the dream of homeownership is becoming increasingly out of reach for many Americans.
Experts are warning that these rising rates could have a lasting impact on the housing market, potentially leading to a slowdown in home sales and a decrease in home values. As the affordability crisis worsens, it will be increasingly important for policymakers to address the underlying issues driving these rate increases and work towards solutions that will make homeownership more attainable for all.
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