Wall Street Journal writers Laura Kusisto and Christina Rexrode reported last week that, “Mortgage rates hit their highest level in more than seven years this week at nearly 5%, a level that could deter many home buyers and represents another setback for the slumping housing market.
“The average rate for a 30-year fixed-rate mortgage rose to 4.9%—the largest weekly jump in about two years—according to data released Thursday by mortgage-finance giant Freddie Mac.
“Lenders and real-estate agents say that, even now, all but the most qualified buyers making large down payments face borrowing rates of 5%.”
“Mortgage Rates Fast Approaching 5%, a Fresh Blow to Housing Market,” by Laura Kusisto and Christina Rexrode. The Wall Street Journal Online (October 11, 2018).
The Journal article added that, “A 5% mortgage rate isn’t that high by historic standards. During much of the decade before the financial crisis, these rates hovered between 5% and 7%. But a return to more normal lending rates won’t feel normal to many buyers who have become accustomed to getting a mortgage loan at 4% or lower, and they could experience sticker shock at what they would have to pay now for a home loan.”
