US mortgage rates top 6% for first time since 2008
Last week, long-term mortgage rates in the US exceeded 6% for the first time since the 2008 financial crisis, according to data from state-owned mortgage corporation Freddie Mac.
The average interest rate on 30-year mortgages increased to 6.02% in the week ended September 15, compared to 5.89% per annum a week earlier and 2.86% a year ago.
Buying a $500,000 home with a $100,000 down payment and a 6.02% mortgage on the remainder would pay, on average, $465,000 in interest on the loan over 30 years, according to Bankrate.com. A year ago, the mortgage overpayment would have been about $200,000.
“Mortgage values continued to rise after the release of higher-than-expected inflation this week,” said Sam Hater, chief economist at Freddie Mac.
The average rate on loans for a period of 15 years increased by 5 bps to 5.21%, while five-year loans this week were issued at an average of 4.93% (plus 29 bps for the week).
Freddie Mac calculates average rates based on data from approximately 80 mortgage lenders across the country. Rates do not take into account potential commissions and other fees associated with mortgages.