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he rate on a popular type of home loan increased this week to its highest level in 20 years, according to data released Thursday.
The average rate on a 30-year fixed loan increased to 6.92% as of Thursday, according to the results of Freddie Mac’s weekly Primary Mortgage Market Survey—the highest such rate since April 2002.
Mortgage rates have more than doubled this year as the Federal Reserve has moved to combat inflation. “We continue to see a tale of two economies in the data,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears and housing affordability are driving housing demand down precipitously.”
Prospective buyers have pulled back in recent months as high mortgage rates have weighed on home loan demand. The volume of applications for a loan to purchase a home last week—a leading indicator of buyer demand—was 39% lower than the same week last year, the Mortgage Bankers Association said earlier this week.
