Mortgage rates are closing in on the 7 percent level following a dip to nearly 6 percent a few weeks back, signaling further challenges for the American housing market.
The average rate on a 30-year fixed-year mortgage was 6.84 percent for the week ending Nov. 21, according to data from Freddie Mac. The rate is up from a low of 6.08 percent in late September and is now inching close to this year’s peak of 7.22 percent hit in May.
“Heading into the holidays, purchase demand remains in the doldrums,” said Sam Khater, Freddie Mac’s chief economist. “While for-sale inventory is increasing modestly, the elevated interest rate environment has caused new construction to soften.”…