Mortgage Rates Reach 23-Year High, Impacting Housing Market

Mortgage rates in the US have reached a 23-year high, with the 30-year fixed mortgage rate climbing to 8%, the highest level since 2000. The increase comes after a series of interest rate hikes by the Federal Reserve to combat inflation. The rising rates have slowed the housing market, with mortgage applications at their lowest level since 1996 and sales of previously owned homes plummeting over 15% compared to last year. Major housing industry groups have expressed concern and urged the Fed to stop hiking its benchmark interest rate. The Fed plans to raise rates one more time this year.