U.S. Mortgage Interest Rates Jump To Highest Level Since 2008

• The average interest rate on the most popular U.S. home loan climbed to its highest level since the 2008 financial crisis and purchase applications were down more than 15% from last year, Mortgage Bankers Association (MBA) data showed on June 15, 2022. 
• The average contract rate on a 30-year fixed-rate mortgage rose by 25 basis points to 5.65% for the week ended June 10, the highest level since late 2008, towards the end of the financial crisis and Great Recession. 
• The MBA said its Purchase Composite Index, a measure of all mortgage loan applications for the purchase of a single-family home, increased 8.1% from a week earlier and its Refinance Index rose 3.7%. This means that more homebuyers sought properties compared to a week earlier, perhaps signalling a flurry of activity before aggressive tightening by the Federal Reserve further impacts the sector.

(Source: Reuters)