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Ouch! Higher Mortgage Rates Exacerbate Housing Slump

Freddie Mac says that the average rate for 30-year fixed mortgages was 6.74% on June 14. That’s up from 6.15% on May 10. Fred’s chief economist, Frank Nothaft, said (in a press release):

“Higher mortgage rates may weigh on the housing market’s gradual recovery. While demand appears to have stabilized, inventories of new homes remain high, putting downward pressure on construction and home prices.”

That’s putting it mildly. A jump of more than half a percent in 30-year fixed rates has drastically worsened the economics of homebuying for a while lot of families since last month.

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