Anna Bahney, CNN Business
Mortgage rates fell this week after surpassing 7% for the first time in 20 years.
According to Freddie Mac, the average 30-year fixed-rate mortgage rate was 6.95% for the week ending November 3, down from 7.08% the week before. A year ago, the 30-year fixed rate was 3.09%.
Mortgage rates have hovered around 7%, cooling the once-overheated housing market significantly, according to Sam Cater, chief economist at Freddie Mac.
Mortgage rates have been rising almost weekly since late August and have more than doubled since the beginning of the year.
The rapid rise was fueled by the Federal Reserve’s unprecedented campaign of interest rate hikes to curb surging inflation. A combination of central bank rate hikes, investor fears of a recession and mixed economic news have made mortgage rates increasingly volatile over the past few months.
of The Fed announced yesterday It will raise the benchmark rate by another 75 basis points, making it the sixth rate hike this year and the fourth in a row of that magnitude.
“Yesterday’s rate hike by the Federal Reserve will certainly inject additional lead into the bottom of the housing market,” Cater said.
He added that demand is declining as buyers navigate the unpredictable situation, while other potential buyers remain on the sidelines due to ineligibility for loans.
This is a developing story and will be updated.
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