The 30-year mortgage rate hit 7.48% on August 22, 2019, according to Freddie Mac. This is the highest rate that the 30-year mortgage rate has been since 2000, when it hit 8.05% in April.
This spike in mortgage rates has been attributed to the Federal Reserve’s decision to cut interest rates in July. The central bank announced that it would be cutting rates for the first time in a decade in order to help stimulate the economy and stave off a potential recession.
The increase in mortgage rates has had a significant impact on potential homeowners, raising the cost of borrowing and making it more difficult for individuals to become homeowners. It has also driven down the demand for mortgages, with the number of applications for home purchases falling to their lowest levels in three years.
