August 18, 2023

The average rate on the standard 30-year fixed mortgage rose to 7.09%.

 That’s the highest level in more than 20 years, according to mortgage giant Freddie Mac. Potential buyers and sellers are staying put; the former can’t find homes they can afford and the latter are reluctant to give up their low-rate loans. With refinancing slowed, mortgage lenders have laid off tens of thousands of people. Mortgage rates tend to move loosely with the 10-year Treasury yield—which today hit its highest level since 2007 —and some analysts anticipate they’ll continue climbing. When the Fed’s interest rate hikes began, high borrowing costs to buy a home were expected to be temporary, but they have persisted.

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