Buying a home continues to get more expensive. The Federal Home Loan Mortgage Corporation, also known as Freddie Mac, reported that mortgage rates jumped above seven percent for the week ending on October 27. That is the highest level since April 2002.
The 30-year fixed-rate mortgage has nearly doubled over the past year, rising from 3.14% to 7.08%. Higher borrowing costs have taken a toll on the housing market, as existing home sales in September fell nearly 24%, according to the New York Times.
New homeowners have seen the cost of a mortgage skyrocket. The national median mortgage payment has risen by 40% since the start of the year when it was $558 a month. In September, the median monthly payment was $1,941, a 5.5% increase from the previous month.
“The 30-year fixed-rate mortgage broke seven percent for the first time since April 2002, leading to greater stagnation in the housing market. As inflation endures, consumers are seeing higher costs at every turn, causing further declines in consumer confidence this month. In fact, many potential homebuyers are choosing to wait and see where the housing market will end up, pushing demand and home prices further downward,” Sam Khater, chief economist at Freddie Mac, said in a statement.
