US mortgage rates hit their highest level in 23 years

Mortgage rates in the United States reached the highest level in 23 years.

The data showed that the 30-year fixed loan rate increased by 15 basis points to 7.31 percent over the last 15 basis points. This is the highest interest rate recorded since the end of 2000.

Mortgage applications for home purchases in the country fell last week to the lowest level in almost three decades. Claims fell 5 percent on a weekly basis, the lowest level since 1995. Claims were down 30 percent compared with the same month a year earlier.

This was accepted as an indication that the housing market was negatively affected by the recent rise in borrowing costs.

US bond yields are referenced to mortgage-backed mortgage rates, and yields on these government bonds continue to rise as investors view a strong and resilient economic outlook.

POWELL’S SPEECH IS CRITICAL

Federal Reserve (Fed) Chairman Jerome Powell is expected to speak at the annual Jackson Hole symposium this weekend. The implications of Powell’s speech are also critical for the housing market.

Possible messages that interest rates will continue to rise will keep mortgage rates high and put more pressure on the housing market with higher prices.