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Mortgage Rates Jump to Holy-Moly 7.09%, FHA Rates to Highest in 20 Years, Pulling Rug Out From Under Home Sales in August

August 10, 2023

by Wolf Richter Wolf Street

Mortgage applications to purchase a home: -40% from 2022 and 2019, 3rd worst week since 1995, behind only two weeks in February.

The 7%+ mortgages are doing their magic on the housing market as they keep buyers out of the market, and home sales sagged further in late July and August, from already dismal levels, as indicated by weekly applications for mortgages to purchase a home.

The average interest rate on 30-year fixed-rate mortgages with conforming balances jumped to 7.09%, from 6.93% in the prior reporting week, the third highest since January 2002, with only two weeks last November having been marginally higher than this reporting week, according to data from the Mortgage Bankers Association today.