Last week, mortgage rates reached their highest level in over 14 years, dealing additional damage to the housing market that is already cooling off quickly.
According to a weekly survey by Freddie Mac issued last week, the average rate on a 30-year fixed mortgage increased to 5.89%, surpassing a previous high from June.
And it appears like mortgage rates will keep rising.
The Federal Reserve has been hiking rates to try to contain inflation, which has driven up borrowing costs across the board.
Currently, it appears that the central bank will increase interest rates this month by another 0.75 percentage points.
According to analysts, the Federal Reserve places a lot of emphasis on the housing market since growing housing expenses are a big reason for this year’s extraordinarily high inflation.
