Mortgage rates in America have surpassed 6% for the first time since the 2008-09 financial
crisis.
The average interest rate on the most popular U.S. home loan has risen above 6% and is now
more than double the level it was at a year ago, according to the Mortgage Bankers Association.
Rising mortgage rates are weighing on America’s housing sector as the U.S. Federal Reserve
continues to lift interest rates to dampen inflation. The central bank has raised its benchmark
overnight lending rate a total of 225 basis points since March of this year.
The average rate on a 30-year mortgage rose by seven basis points to 6.01% for the week
ended September 9, a level last seen during the Great Recession of 2008.
The association said that mortgage loan applications in the U.S. declined 1.2% from a week
earlier and are now down 64% from this time last year.
Higher interest rates are impacting the entire housing sector in the U.S., with new home sales
falling to a six-year low in July while home resales are at a two-year low.
