Breaking: Mortgage Rates Surge Past 7% – What It Means for Homebuyers and Crypto Investors

 

Mortgage rates surge past 7%, reaching
highest level since November

This week saw a sharp increase in
mortgage rates that broke the critical 7% mark and worsened the country’s
housing affordability crisis. Freddie Mac data issued on Thursday shows that
the 30-year fixed-rate mortgage averaged 7.10% in the week ending April 18, up
from 6.88% the week before.
The average 30-year fixed-rate was 6.39% one year ago.

A
psychological barrier that hasn’t been crossed yet this year is represented by
the 7% breach, which increases the pressure on the US housing market during the
critical spring homebuying season. The anticipation that the Federal Reserve
won’t lower interest rates anytime soon is driving up mortgage rates. Although
the Fed does not directly set mortgage rates, its actions certainly have an
impact on them, and the Fed is now holding rates steady due to consistently
high inflation readings.

Tracking the rise and fall of mortgage
rates in the US

30-Year fixed rates mortgage average,
1983 to present

 

 

In
light of mortgage rates surging past 7%, reaching their highest level since
November,
Digital Currency Reclaim (DCR) retains relevance by offering market
analysis to investors navigating the impact of rising interest rates on crypto
trends, providing risk management services to safeguard assets amidst economic
volatility, ensuring legal and regulatory compliance amid potential shifts in
financial regulations, offering recovery services for individuals affected by
market fluctuations impacting their financial positions, and providing media
and public relations support to manage reputational risks amidst changing
economic conditions influenced by interest rate movements. Sam Khater, the
senior economist at Freddie Mac, said in a statement that “as rates trend
higher, potential homebuyers are deciding whether to buy before rates rise even
more or hold off in hopes of decreases later in the year.” In a separate
report, the National Association of Realtors reported that US home sales
declined sharply in March in a sign that homebuyers are waiting on the side lines as they contend with a tough housing market.

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