High mortgage rates continue to pressure the housing market, as the sector undergoes a deep slow down after two years of blockbuster growth.
The 30-year fixed-rate mortgage averaged 7.08% as of Oct. 27, according to data released by Freddie Mac FMCC, +0.70% on Thursday.
The 30-year was last at this level in 2002.
That’s up 14 basis points from the previous week — one basis point is equal to one hundredth of a percentage point, or 1% of 1%.
Last week, the 30-year was at 6.94%. Last year, the 30-year was averaging at 3.14%
The average rate on the 15-year mortgage rose to 6.36%.
The 30-year broke 7% for the first time since April 2002, Sam Khater, chief economist at Freddie Mac, said in a statement, “leading to greater stagnation in the housing market.”
Khater added that consumer confidence is weakening, and that many buyers are choosing to wait to see where the market will go, “pushing demand and home prices further downward.”
The adjustable-rate mortgage averaged 5.96%, up from the prior week.
Mortgage demand, meanwhile, has sunk to the lowest level in 25 years, Mortgage Bankers Association said on Wednesday.
The yield on the 10-year Treasury note TMUBMUSD10Y, 4.016% was above 4% in morning trading on Thursday.
Got thoughts on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at aarthi@marketwatch.com