Mortgage rates are surging at the fastest rate since 1987, pricing out more than 16 million potential homebuyers, in the latest dose of bad economic news for resident Biden and Democrats ahead of the midterm elections.
The Federal Home Loan Mortgage Corporation announced Thursday that the interest rate on an average 30-year-fixed-rate mortgage had climbed in the past week from 4.72% to 5% — a rate unseen since early 2011.
Overall, mortgage rates have jumped 1.8 percentage points in the past three months, the fastest increase since 1987.
“This change added about $400 to the monthly mortgage payment for a median-priced home,”
The National Association of Realtors and other industry groups forecast that home sales will drop roughly 10% this year.