Mortgage rates surge to 21-year high

Freddie MacThe 30-year fixed-rate mortgage averaged 7.09% over the week ending on Thursday, marking a significant increase from 6.96% the week prior, the data showed.as it tries to slash inflation by slowing the economy and choking off demand.for everything from car loans to credit card debt to mortgages.

When the Fed imposed its first rate hike of the current series in March 2022, the average 30-year fixed mortgage stood at just 4.45%,Each percentage point increase in a mortgage rate can add thousands or tens of thousands in additional cost each year, depending on the price of the house, according toThe average 30-year fixed mortgage has stood above 6.5% since May, Freddie Mac data shows. In November, the rate reached 7.08%, the previous high during the current rate hike cycle.

The rise in home-buying costs has slowed demand, but the primary cause of a stalled housing market is a lack of supply, Freddie MacSo far, the rate hikes appear to have slowed but not imperiled the nation's economic growth.of government data showed gross domestic product increased at a 2% annualized rate for a three-month period ending in March -- a sizable jump from the previous estimate of 1.3%.

The last time the average 30-year fixed mortgage exceeded current rates, in March 2002, the rate stood at 7.18%, Freddie Mac data shows. Two years earlier, rates topped out at 8.64%. The outlook for mortgage costs depends in part on whether the Fed chooses to continue raising interest rates. The central bank is set to make its next interest rate decision in mid-September.

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