The average interest rate on the most popular US mortgage rose to its highest level since October 2008, data from the Mortgage Bankers Association (MBA) showed on Wednesday.
Rising mortgage rates continue to weigh on the interest-sensitive housing sector as the Federal Reserve continues to aggressively raise borrowing costs to curb high inflation.
On Wednesday the Central Bank will raise interest rates by three-quarters of a percentage point for the third time in a row.
Expectations of tightening by the Federal Reserve have pushed Treasury yields higher since the start of this year. The yield on a 10-year loan is the benchmark for mortgage rates.
The average contract rate on, 30-year fixed mortgages rose 2 basis points to 6.25 percent in the week ended Sept. 16, a level not seen since the end of the financial crisis and Great Recession.
MBA also reported that its market composite index, which measures the number of mortgage applications, rose 3.8 percent a week ago, but was well below last year’s level. Its refinancing rate jumped 10. % from last week, but fell 82.7% from a year ago.