(WSJ) US average rate for a 30-year mortgage is 4.16%, the first time it has surpassed the 4% mark since May 2019.
The rise in mortgage rate suggests that the era of ultralow rates is coming to an end, with the Fed’s decision to raise the key rate on Wednesday likely to add more pressure to home lending.
At 4.16%, the mortgage rate has risen significantly from a record low of 2.65% reached in January last year. The rate is also higher than the 3.22% posted at the beginning of 2022.
Higher rates are now starting to dampen the demand for mortgages, with the applications for the loans falling by 3.9% in February compared to the prior year.
The mortgage rates come amid a decline in the house inventory listed in the market, with the National Association of Realtor pointing to a record low 1.6-month supply of houses in January.
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