The average mortgage rate in the United States is climbing to its highest level since 2001, according to data from the Mortgage Bankers Association (MBA) shown Wednesday.
The average rate on a 30-year fixed-rate mortgage rose 22 basis points to 7.16% last week, while the MBA composite market index, a measure of the volume of mortgage applications, fell by a bit. ‘1.7% compared to the previous week. Mortgage application activity is at its lowest level since 1997. Mortgage interest rates have more than doubled since the start of the year as a result of the US Federal Reserve’s aggressive monetary policy.
The central bank is expected to raise interest rates by 75 basis points for the fourth consecutive time at the end of the next board meeting, which will take place in early November.
