Average long-term US mortgage rate climbs to 7.09% this week to highest level in more than 20 years

The average rate on a 30-year mortgage remains more than double what it was two years ago, when it was just 2.86%.

By and

National News

August 17, 2023 - 3:27 PM

Texas builder D.R. Horton, the largest U.S. homebuilder, saw a 37% year-over-year increase in sales orders in mid-2023 despite higher mortgage rates and inflationary pressures. (Ron Baselice/The Dallas Morning News/TNS)

The average long-term U.S. mortgage rate climbed this week to its highest level in more than 20 years, grim news for would-be homebuyers already challenged by a housing market that remains competitive due to a dearth of homes for sale.

Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year home loan rose to 7.09% from 6.96% last week. A year ago, the rate averaged 5.13%.

It’s the fourth consecutive weekly increase for the average rate and the highest since early April 2002, when it averaged 7.13%. The last time the average rate was above 7% was last November, when it stood at 7.08%.

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