US mortgage rates top 7% for first time in two decades

October 31, 2022•1 Minute
RTC Director RTC Director

The average long-term U.S. mortgage rate topped 7% for the first time in more than two decades this week, a result of the Federal Reserve’s aggressive rate hikes intended to tame inflation not seen in some 40 years.

Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate jumped to 7.08% from 6.94% last week. The last time the average rate was above 7% was April 2002, a time when the U.S. was still reeling from the September 11 terrorist attacks, but six years away from the 2008 housing market collapse that triggered the Great Recession.