Mortgage rates soared past 7% this week — here’s what it means for you

On Thursday, mortgage rates soared to 7.08%, the highest level they’ve reached since 2002. 30-year rates are the most common home-loans on the market, and just a year ago rates were only 3.09%. Since January of this year, rates have jumped the highest they ever have in a single year, a whole 3.86 percentage points. Rates went from 3.22% to 7.08%, the highest they’ve been in two decades. 

The jump in mortgage rates comes as the Fed continues to increase interest rates to combat high inflation. Back in September, interest rates increased by 0.75%, bringing the federal funds rate to between 3% to 3.25%. These rates are expected to increase through 2023, with plans to raise rates another 0.75 percentage points next week. Unfortunately, these increased interest rates are weighing heavily on the housing market.

What this means for you

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