Bidenomics = High mortgage rates, high inflation rates, collapsed banks, expensive groceries, record high rent, and dwindling retirement accounts.
The popular 30-year fixed mortgage rates are headed to 8%, economists warned.
In early July 30-year fixed-rate mortgage spiked 31 basis points in one week to 7.22%!
The average payment on a $400,000 mortgage is $1,000 more per month than it was 2 years ago.
“The 30-year fixed mortgage rate has now risen 31 basis points in just the past week. For a homebuyer taking out a $400,000 mortgage, the monthly payment of principal and interest rose to $2,720 from $2,637 in just one week.” CNBC reported last month.
This week the 30-year fixed rate averaged 7.26%
Experts say mortgage rates will keep climbing and could go up to 8%.
With mortgage rates firmly above 7%, homeownership has become much more expensive. But will rates go even higher?
Three experts told MarketWatch that if the economy continues to show signs of strength, and the U.S. Federal Reserve hikes its benchmark interest rate once again, rates could go up to 8%.
Even though the 30-year fixed mortgage rate was averaging 7.26% as of Tuesday evening, the highest level since November 2022, economists say rates could go up further.
The 30-year is “at a critical stage,” Lawrence Yun, chief economist at the National Association of Realtors, told MarketWatch.
“If the 30-year-fixed mortgage rate can hold at a high mark of 7.2% — and the 10-year yield holds at 4.2% — then this would be the high for mortgage rates before retreating,” Yun said. “If it breaks this line and easily goes above 7.2%, then the mortgage rate reaches 8%.”