2008 Housing Crisis Re-Emerges
Here’s what is happening…
While the current housing crisis is not like the 2008 housing crisis one thing is very similar. U.S. mortgage rates have now climbed to the highest level since 2008!
According to Fox Business, Freddie Mac found that the average rate for the benchmark 30-year fixed mortgage increased this week to 5.89% compared to last week where it stood at 5.66%.
This time the same fixed mortgage was just 2.88%.
Freddie Mac’s chief economist Sam Khater explained, “Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy due to elevated inflation. Not only are mortgage rates rising but the dispersion of rates has increased, suggesting that borrowers can meaningfully benefit from shopping around for a better rate.”
Furthermore, the rate for a 15-year fixed mortgage currently stands at 5.16% when compared to last year which was at 2.19%.
