30-year fixed-rate mortgage rate surges to highest in 2 decades

The average 30-year fixed-rate mortgage rate is the highest it’s been in more than 20 years, Freddie Mac announced Thursday.

This announcement comes in the wake of home prices reportedly moving up 0.8 percent in June, after more than a year of slowing. In a statement on the average rate, currently at 7.09 percent, Freddie Mac’s Chief Economist Sam Khater said the current strength of the economy and the rise of the 10-year Treasury yield are some of the factors contributing to the high rate.

“The last time the 30-year fixed-rate mortgage exceeded seven percent was last November. Demand has been impacted by affordability headwinds, but low inventory remains the root cause of stalling home sales,” Khater said.

Freddie Mac also said this week’s rate is 0.13 percent higher than last week’s and 1.96 percent higher than it was last year at this point. The results are a part of the larger “Primary Mortgage Market Survey” Freddie Mac conducts weekly.