Average U.S. mortgage interest rate rises to 5.53%, applications up
It has now risen 242 basis points from 12 months ago, the sharpest rise in decades, as the U.S. Federal Reserve tightens financial conditions to try to dampen demand across the economy as it battles a 40-year-high inflation rate. The housing market, flashing signs of overheating over the past two years, is seen as a particularly rate-sensitive sector and Fed policymakers are keen to sap some of its current double digit annual price growth. Whether they can cool the market as much as they hope remains to be seen, with price growth fueled by record-low housing stock, unusually high household savings, an extremely tight job market and increased worker mobility.
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