Apr 14, 2022 - Economy
Mortgage rates hit 5%, highest in more than a decade
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The average rate on a 30-year mortgage hit 5% this week for the first time since 2011, according to widely cited data from Freddie Mac.
Why it matters: It's becoming increasingly expensive to buy a house — if you can even find one. Over the past three months, mortgage rates have surged at a pace last seen in 1987.
- At the same time, the home-buying frenzy driven by the pandemic has reduced the available supply of single-family houses. The number of home listings was at a record low last month, according to realtor.com data.
- Open houses around the country with a line of folks waiting out the door are not uncommon.
Bottom line: It's going to be hard for first-time buyers to afford a house, but it'll likely be a while before the real estate madness moderates.
