Wednesday, December 2, 2020

Tag: How Will 6% Mortgage Rates Deal with Housing Bubble 2?

How Will 6% Mortgage Rates Deal with Housing Bubble 2?

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by Wolf Richter, Wolf Street:

What many in 2016 thought would never happen again is now reality.

It finally happened – a line in the sand has been breached. The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) and a 20% down-payment did what people had thought in 2016 we’d never see again: It breached 5%.

It hit 5.05%, to be precise, for the week ending October 5, according to the Mortgage Bankers Association (MBA) this morning. This is the highest average rate since January 5, 2010 (chart via Investing.com):