December 7, 2021
Existing home sales surge as interest rates point higher

US average 30-year mortgage rate back up over 3% this week

SILVER SPRING, Md. — The average long-term U.S. mortgage rate rose this week, with the primary 30-year rate inching back up over 3%.

Mortgage purchaser Freddie Mac reported Thursday that the average rate on the 30-year benchmark residence mortgage jumped to a still-low 3.1% from 2.98% final week. A yr in the past at this time the rate was 2.72%.

The rate for a 15-year mortgage, in style with householders refinancing their mortgages, rose to 2.39% from 2.27% final week. It stood at 2.28% a yr in the past.

Sturdy client demand and ongoing provide shortages have pushed costs larger for nearly every thing, chipping away at current positive aspects in wages and salaries for employees. The federal government reported final week that costs for U.S. shoppers jumped 6.2% in October in contrast with a yr earlier, resulting in the very best inflation rate since 1990.

The housing market has been hamstrung by an absence of provide even earlier than the pandemic broke in early 2020. That lack of provide, together with supplies and labor shortages, has pushed new and current residence costs up by greater than 10% previously yr and as a lot as 33% in some areas within the West.

Regardless of the traditionally low rates of interest, the dearth of provide mixed with a surge in costs for houses has left many would-be consumers empty-handed.

Earlier Thursday, the Labor Division reported that the variety of People making use of for unemployment advantages fell for the seventh straight week to a pandemic low of 268,000. Since April 2020, employers have employed greater than 18 million individuals, together with 531,000 final month. However the U.S. economic system continues to be greater than 4 million jobs in need of the place it was in February final yr.

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