The 30-year mortgage rate hits 7.48%, the highest level since 2000
The 30-year mortgage rate on November 5, 2020 reached a record high since 2000, reaching 7.48%, according to data released by Freddie Mac. This marks the 16th consecutive week that the 30-year fixed mortgage rate has risen from 3.67% in mid-June.
This record high in the 30-year fixed mortgage rate comes despite the continued low rates from the Federal Reserve, which have kept the short-term borrowing rate near historic lows throughout 2020. The rapid rise in mortgage rates has been driven by positive economic news, fueling investor confidence and increased demand for mortgage-backed securities.
Economists warn that the combination of rising mortgage rates and higher home prices could lead to a potential slowdown in the housing market, as affordability becomes an increasing concern for buyers. Increased mortgage rates have the potential to make monthly mortgage payments unsustainable for many potential homeowners, while rising home prices are further straining affordability.