Today's Article

Mortgage Rates Keep Soaring, As Fed Takes Action

연준의 조치로 계속 치솟는 주택담보대출 금리 

As the Fed raises 1interest rates aimed at 2lowering inflation, 3mortgage rates are also 4soaring, 5topping 7% for the first time since 2002. According to lending giant, Freddie Mac, the 30-year fixed-rate mortgage averaged 7.08% in the week ending October 27. For 6comparison, a year ago, the 30-year 7fixed rate stood at 3.14%. Experts say the higher the rates go, the less you can 8afford.

“People buy houses based on what the monthly payment is. The payment prices, the actual monthly cost, the payment has gone up by as much as 50%.”

The increase fueled by the Federal Reserve’s 9drastic action to raise interest rates. And experts say it’s crushing the housing market, home prices beginning to drop in some parts of the country and slowing new contracts.

“We’ve seen interest rates going up very quickly, faster than they’ve gone up since the 1980s. The Federal Reserve has been pushing up 10short-term rates and mortgage rates (have) responded as well.”

While the Fed does not set the interest rates borrowers pay on their mortgage directly, its actions do influence them. Experts say it’s possible prices could continue to fall for the immediate future. But because there’s still a lot of 11pent-up demand and supply is still low, we likely won’t see major 12declines any time soon.

“When there were 10, 15 offers for a 13property, that was sort of an un... 14unreal market. Now it’s moving into a more 15reasonable discussion between buyer and seller.”