Real estate is a major driver of the US economy, accounting for 17% of its gross domestic product (GDP). Private home ownership has long served as the gateway to the middle class for working Americans.
Freddie Mac, the state-chartered mortgage aggregator, announced on Thursday that 30-year fixed-rate mortgages had hit their highest point in more than 20 years. The trend has put a damper on home sales and highlighted one of the many risks associated with the Federal Reserve’s response to inflation.“This week, the 30-year fixed-rate mortgage reached its highest level since 2001 and indications of ongoing economic strength will likely continue to keep upward pressure on rates in the short-term,” Sam Khater, Freddie Mac’s chief economist, said in a news release.
