US mortgage rates rise to 7.31%, the highest point in almost two decades

This week, US mortgage rates reached their highest point in over 23 years due to ongoing inflationary pressures.

According to Freddie Mac data issued on Thursday, the 30-year fixed-rate mortgage averaged 7.31% in the week ending September 28, up from 7.19% the week prior. The 30-year fixed-rate was 6.70 percent a year ago.

The 30-year fixed-rate mortgage has reached its highest point since 2000, according to a statement from chief economist Sam Khater of Freddie Mac. But unlike at the beginning of the decade, home prices are growing now along with mortgage rates, mostly as a result of low inventory. Both buyers and sellers are holding out for better conditions as a result of these challenges.

Based on the hundreds of mortgage applications that Freddie Mac receives from lenders nationwide, the average mortgage rate is determined. Only borrowers with great credit and a 20% down payment are included in the survey.