From Yahoo Money:
Mortgage rates hit their highest level since August 2009 this week, following a sharp increase in the 10-year Treasury yield and continuing a breakneck ascent since the start of 2022.
The rate on the 30-year fixed mortgage increased to 5.27%, up from 5.10% last week, according to Freddie Mac. Mortgage rates have climbed over a half-point in the last four weeks and are up 2 percentage points from the start of the year.
The rapid increase in rates — tied to the Federal Reserve’s moves to hike interest rates to curb inflation — may be finally cooling the once-blistering hot housing market as affordability challenges become untenable for buyers.
“While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months,” said Sam Khater, Freddie Mac’s chief economist.
The cost of financing 80% of a typical home listed for sale has increased by nearly 50% in the last year, according to Realtor.com. Housing affordability has worsened in the first quarter of 2022, with the monthly payment for an average existing home with a 20% down payment up $1,383, which is $319 or 30% more than a year ago, according to NAR analysts.
Families are spending 18.7% of their income on mortgage payments, compared with just 14.2% a year ago.