Connect with us


Rates On Mortgage Dip Back Below 7%

Avatar of Salman Ahmad



Rates On Mortgage Dip Back Below 7%

(CTN News) – The rate on mortgages fell this week after exceeding 7% for the first time in 20 years last week.

According to Freddie Mac, 30-year fixed rates averaged 6.95% in the week ending November 3rd, down from 7.08% the week before. The 30-year fixed rate stood at 3.09% a year ago.

According to Sam Khater, chief economist at Freddie Mac, mortgage rates continue to hover around 7%.

In the past year, the 30-year fixed rate has almost doubled and has increased almost every week since late August.

As a result of the Federal Reserve’s unprecedented campaign to raise interest rates, inflation has risen rapidly. Over the past several months, mortgage rates have become increasingly volatile due to rate hikes by the central bank, investor concerns about a recession, and mixed economic news.

It was announced yesterday that the Federal Reserve would raise its benchmark interest rate by 75 basis points, its sixth rate increase this year.

There is still a problem with inflation

Jerome Powell, chairman of the Federal Reserve, said on Wednesday that the possibility of a “soft landing,” in which the economy cools without falling into recession, has narrowed, but it is still possible.

Throughout this year, “the inflation picture has become increasingly challenging,” he said. A more restrictive policy means a soft landing will be more difficult.”

Despite not directly setting mortgage interest rates, the Fed influences them. The yield on 10-year US Treasury bonds tends to determine mortgage rates. When investors see or anticipate rate hikes, they make moves that increase mortgage rates and yields.

According to’s manager of economic research George Ratiu, both two-year and 10-year Treasury yields rose in response to Wednesday’s announcement.

The price of living is increasing

Mortgage rates are rising, making homeownership increasingly out of reach for those who can’t afford it or don’t qualify

According to, buyers of a median-priced home will have to pay $1,000 more each month as a result of higher mortgage rates.

Most buyers’ budgets have been effectively reduced by this dramatic rise in financing costs, Ratiu said.

Besides mortgage rates, home prices have also increased significantly since last year. estimates a typical homebuyer would have had a $1,296 monthly payment based on September 2021’s median home price and 30-year fixed mortgage rate. A typical buyer is facing a $2,296 monthly payment due to both higher prices and mortgage rates around 7% this year.

To have the same monthly payment as last year, the median home price would have to decline by 45%, to $235,000.

In some areas, prices aren’t dropping that much, but they are creeping down.

According to Ratiu, most homes are priced using comparable properties sold within the last six months, which does not reflect today’s much-higher rates and buyers’ inability to afford them.

With household incomes lagging inflation and borrowing costs on the rise, we can expect transactions to decline and prices to decline.


Roku Beats Q3 Estimates, But Stock Plummets

Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

Continue Reading

CTN News App

CTN News App

Recent News


compras monedas fc 24

Advertise here

Volunteering at Soi Dog

Find a Job

Jooble jobs

Free ibomma Movies