Mortgage Rates Keep Soaring, As Fed Takes Action

¿¬ÁØÀÇ Á¶Ä¡·Î °è¼Ó Ä¡¼Ú´Â ÁÖÅô㺸´ëÃ⠱ݸ® 

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.¡±