Mortgage rates hit highest level in nearly six months in bad news for Biden
By
Zachary Halaschak
May 2, 2024 11:50 am
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Mortgage rates have climbed to their highest level in months, some unwelcome news for President Joe Biden in a critical election year.
As of Thursday, the average rate on a 30-year, fixed-rate mortgage was 7.17%, according to Freddie Mac. That is the highest mortgage rates have been since November of last year. The higher rates are crimping homebuying, a factor that has weighed on voter perceptions of the economy.
Mortgage rates peaked at about 7.8% in October, although they fell steadily through early January as investors expected the Federal Reserve to start cutting interest rates. Since then, though, inflation reports have come in hotter than expected, and the prospect of rate cuts has been pushed back.
The housing market has taken on water because of the higher interest rates. The Fed controls short-term interest rates, which affect rates throughout the economy, including mortgages.
While the labor market has been strong and jobs are readily available, discontent with the economy is high because of hot inflation and higher interest rates.
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https://www.washingtonexaminer.com/policy/finance-and-economy/2988426/mortgage-rates-hit-highest-level-nearly-six-months-bad-news-biden/
