US mortgage rate tops 7%, the highest level in over 2 decades, as the Fed hikes rates once again. The weekly average for a 30-year fixed rate loan is now 7.08%.
Rates have more than doubled since the start of the year, making it much harder for would be homebuyers. The pace of home sales has declined for 8 consecutive months as frustrated buyers give up, unable to afford higher payments.
Rising rates have also slammed the lid on home prices, which have declined 1%, according to the latest reading of a closely watched home price index.
Moody’s Analytics is predicting an overall year-over year price decline of 6% nationally, and about a 10% fall from the price peak this past June.
The number of people applying to get a mortgage is at its lowest level since 1997, according to experts.
