US home loan interest rates highest since 2000

Home purchase contracts fall to lowest level in decades

The average 30-year fixed mortgage rate rose 12 basis points to 7.53 percent over the weekend, according to the Mortgage Bankers Association.

This means that the US home loan interest rate has surpassed 7.5% for the first time since November 2000. At this time last year, the interest rate was just above 5.5%.

In housing terms, that means that a $400,000 home purchase with a 30-year mortgage would cost $1,800 a month last year, but would cost nearly $1,000 more this year at current interest rates.

Meanwhile, the survey found that the number of home purchase contracts fell 5.7% during the reporting period, to the lowest level since 1995. Demand for homes has not decreased, but high interest rates have prevented many Americans from achieving their dream of homeownership.

Mortgage News Daily reported that mortgage rates continued to rise this week. According to the site’s tracker, the 30-year fixed rate was at 7.72% on October 3.

Observers say the increasing trend will continue, with the possibility that home loan interest rates could exceed 8% in the near future.

The US housing market has been experiencing rate hikes since early last year, and the Federal Reserve is still likely to raise interest rates again before the end of the year.

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