Mortgage Rates Reach Highest Level Since 2006

Mortgage Rates , Reach Highest Level , Since 2006.

Reuters reports that the United States housing sector continues to feel the impact of tightening financial conditions.

According to data from the Mortgage Bankers Association (MBA), interest rates on the most popular home loan have reached their highest level since 2006.

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Since the beginning of 2022, mortgage rates have more than doubled in the U.S. .

The Federal Reserve has been driving up interest rates in an attempt to combat record-high inflation.

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In the week ending October 7, the average contract rate on a 30-year fixed-rate mortgage rose by 6 basis points to reach 6.81%.

Meanwhile, the MBA's Market Composite Index dropped 2.0% from one week earlier and is down roughly 69% from the same time in 2021.

The MBA's Purchase Index, which measures all mortgage loan applications for the purchase of a single family home, fell 2.1% from a week earlier.

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That index is now down 39% from the same time last year.

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At the same time, the MBA's refinance Index declined 1.8% and is down 86% from one year ago.

Home resale postings have been declining for seven straight months, while home prices have remained in a highly-competitive market.

As a result, would-be homebuyers are continuing to face high prices due to a shortage of properties for sale