2023-08-22 01:54:34
Two years ago the average rate on a 30-year mortgage was 2.86%, but today mortgage rates have skyrocketed, reaching their highest in 21 years and we tell you why and how it affects you.
According to a report by Freddie Mac, the 30-year fixed-rate mortgage reached its highest level in more than 20 yearsbecause “demand has been affected and low inventory remains root cause of stagnant home sales“.
Mortgage buyer data indicates that the current rate is 7.09% And while the last time the 30-year fixed-rate mortgage topped 7% was in November, this time it hit its highest in 20 years.
Why did mortgage rates increase?
According to data from Freddie Mac, the last time the average rate was above 7% was in November 2022, when it reached 7.08%.
“The economy continues to perform better than expected and the 10-year Treasury yield has risen, causing mortgage rates to rise,”
says Sam Khater, chief economist at Freddie Mac.
In addition to the Treasury yield, the lack of housing supply has caused housing sales to fall by 23% during the first half of this year.
On the other hand, the 15-year fixed-rate mortgage averaged 6.46% while a year ago the average was 4.55%.
How much does it cost to buy a house in North Carolina?
According to a study of Forbes beginning of this month, although home listings and sales are down, prices are up and the median sales price in the state for April was $302,549which represented an annual increase of 4.4% according to NC Realtors since the price in April 2022 was $201,000.
Despite the price increase, NC Realtors recorded that the number of homes for sale in April of this year increased by 16% compared to the previous year.
According to Forbes, between new businesses and the number of new residents coming to the state, it does not appear that the demand for housing may decrease and, as a result, prices are not expected to fall.
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