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The average 30-year mortgage rate climbed to 5.89%, the highest level since 2008, according to new data published Thursday by Freddie Mac. The increase comes after a period this summer that saw mortgage rates briefly decline even as the Federal Reserve raises the key interest rate to fight inflation. Markets have been closely watching the Fed's moves since the interest rate hikes began in March. "Rates are reacting to Federal Reserve Chair Jay Powell’s comments following last week’s jobs report in which he reiterated his unwavering focus on bringing inflation down to its 2% target level," said Lisa Sturtevant, chief economist at Bright MLS, a real estate data firm, in an email. In remarks Thursday morning, Powell signaled the Fed intends to keep rates higher for longer. “History cautions strongly against prematurely loosening policy,” the central bank leader said in a Q&A presented by the Cato Institute, a libertarian think-tank based in Washington, D.C, according ...

The average U.S. 30-year mortgage rate surpassed 7% for the first time in two decades, mortgage giant Freddie Mac said Thursday. As of Oct. 27, the average rate hit 7.08%, the highest level since April 2002 and one that Freddie Mac said is "leading to greater stagnation in the housing market." "As inflation endures, consumers are seeing higher costs at every turn, causing further declines in consumer confidence this month," it said. "In fact, many potential homebuyers are choosing to wait and see where the housing market will end up, pushing demand and home prices further downward." Home price gains decelerated at a record pace in August according to the S&P CoreLogic Case-Shiller Home Price Index, cooling from 15.6% to 13% on an annual basis . But home prices are still climbing, having increased from $449,300 to $454,900 in the third quarter, according to U.S. census data. Meanwhile, the national median mortgage payment was $1,941 in September, up ...