Mortgage rates hit 5.89% — the highest level since 2008
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 ...