The average 30- year mortgage rate hit nearly 6%, marking its highest level since 2008. Data by Freddie Mac released on Thursday show that the rate reached 5.89%.
Mortgage rates decreased slightly over the summer in July and August, but are now back on the rise. Rates were at 5.81% in June after starting the year at 3.22%.
These record high rates have in turn affected the number of applications for mortgages. Rates aren’t expected to decrease anytime soon, experts warn.
Experts do believe that the current strong job market will help increase the buying of homes and applying for mortgages.
In Freddie Mac’s report, he also points out some good news for borrowers. “Our research indicates that borrowers could save an average of $1,500 over the life of a loan by getting one additional rate quote and an average of about $3,000 if they get five quotes, “ said Mac.