Mortgage rates have hit an all-time this week, reaching 5.89%. According to an article by CNN Business titled, “Mortgage rates reach highest levels since 2008”, journalist Anna Bahney states “The 30-year fixed-rate mortgage averaged 5.89% in the week ending September 8, up from 5.66% the week before, according to Freddie Mac. That is significantly higher than this time last year when it was 2.88%” (Bahney 2). This rising rate is directly associated with the rate hikes that the Federal Reserve has recently implemented.
The rise in mortgage rates have added to the increasing lists of burdens that lower and middle class families have faced over the past few years. A recent meeting with the Federal Reserve Chairmen hints that these rates will not be dropping anytime soon, if not increase.
These rates have hindered many individuals from being able to purchase homes, but with workers returning to work after COVID, there will be an increasingly active housing market. With the threat of COVID slowly subsiding, the normality of everyday living before the virus is returning and rates should even out over time.
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Information Source - https://www.cnn.com/2022/09/08/homes/mortgage-rates-september-8/index.html