Key Points:

Mortgage rates reach highest level since 2000

• Mortgage rates have soared to their highest level since the end of 2000, putting a dent in affordability for many potential homebuyers.
• This surge in rates makes it more expensive for buyers to borrow money for a home purchase, leading to higher monthly mortgage payments.
• As a result, some first-time buyers or those on a tight budget may find it harder to enter the housing market.
• The increase in mortgage rates is primarily influenced by rising yields on Treasury bonds, which serve as a benchmark for mortgage rates.

Hot take:

Mortgage rates rise, homebuyers’ wallets cry

Mortgage rates have skyrocketed to levels not seen since the end of 2000, leaving potential homebuyers feeling the pinch. With higher rates, borrowing money for a home purchase becomes more expensive, putting a strain on affordability. It’s like a cruel joke – just as people are ready to take the leap into homeownership, they find the ladder has been taken away. Rising yields on Treasury bonds are to blame for this unfortunate turn of events, leaving first-time buyers and those on a tight budget scrambling to find a way into the housing market. It seems that for now, dreams of owning a home may have to be put on hold for some. Ouch!

Original article: https://www.cnbc.com/2023/08/21/mortgage-rates-hit-highest-point-since-2000.html