U.S. mortgage rates neared the 8% mark last week, an industry lobby group said Wednesday, taking home borrowing costs to a fresh 23-year high, as the bond market meltdown continues to influence consumer demand across a range of sectors.said average 30-year fixed rates for conforming loan balances of less than $726,200 rose 20 basis point to 7.9% for the week ending on October 20, a move that takes that headline rate to the highest level since September 2000.
The MBA noted, however, that its refinancing index rose 1.1%, while adjustable rate applications were up 9%, suggesting buyers might be thinking rates have peaked heading into the end of the year and beyond. "These higher mortgage rates are keeping prospective homebuyers out of the market and continue to suppress refinance activity," he added."
The moves paralleled the steepest global government bond market sell-off in a decade, triggered by a combination of higher rate signals from the Federal Reserve, record budget deficits and the specter of billions in new supply from the Treasury over the coming months.