US Mortgage Rates Jump to 5.89%, Highest Since 2008

Mortgage Rates

US Mortgage Rates have jumped to 5.89%, the highest level since 2008, according to the Federal Home Loan Mortgage Corp.

Rates in the United States have risen for the third week in a row, according to reports. The average for a 30-year loan increased to 5.89%, up from 5.66% last week, according to the FMCC.

“Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy to combat elevated inflation,” Sam Khater, the FMCC chief economist, says in a statement. “Not only are mortgage rates rising, but the dispersion of rates also has increased, meaning that borrowers can benefit from shopping around for a better rate.”

Just in the past month, mortgage rates have risen by nearly a whole percentage point. According to Redfin Corp, the average US home is selling below its asking price for the first time in nearly 18 months. The high rates are putting off potential home buyers. Hence, the lack of demand is affecting home prices deeply.

According to Khater, homebuyers could save an average of $1,500 over the life of a loan by getting one extra rate quote. They can also save an average of roughly $3,000 with five quotes. The FMCC issues a weekly survey that focuses on rates for borrowers who put 20% down and have excellent credit.