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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.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.