Mortgage Rates Hit 7-Year High

The benchmark 30-year mortgage rate rose to 4.88% last week, marking the highest 30-year fixed rate since May 2011. With the fed meeting again today and tomorrow and an expectation of another rate hike, mortgage applications were on the rise. The majority of those applications were for refinances, representing 3.7% of the increase vs. 0.3% for new applications.

If the Fed indeed raises rates, which is anticipated based on increased hiring and wages, it will be the third hike this year and the seventh since 2015. Policymakers forecast another hike in December and three more in 2019.

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