Mortgage rates in the US rose for a third straight week, creeping closer to 7%.
(Bloomberg) — Mortgage rates in the US rose for a third straight week, creeping closer to 7%.
The average for a 30-year, fixed loan was 6.96%, up from 6.9% last week, Freddie Mac said in a statement Thursday.
A key measure of consumer prices rose only modestly in July, boosting chances that the Federal Reserve will hold interest rates steady next month and may soon wind down its inflation-fighting campaign. An end to the Fed’s rate hikes would help lift a weight from the housing market.
Mortgage rates hovering near 7% have kept would-be buyers on the fence and discouraged current owners from listing their properties for sale. Prices have been climbing in many areas as shoppers determined to land a deal compete for a slim supply of choices.
“There is no doubt continued high rates will prolong affordability challenges longer than expected, particularly with home prices on the rise again,” Sam Khater, Freddie Mac’s chief economist, said in the statement.
The monthly mortgage bill on a typical existing single-family home rose to $2,051 in the second quarter from $1,864 in the previous three months, according to data from the National Association of Realtors that assumes a 20% down payment.
Families typically spent 27% of their income on loan payments, up from 24.5% in the first quarter, the Realtors group reported Thursday.
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