Economics
As US Mortgage Rates Near 7%, a Warning They Could Go Much Higher
- Realtors’ economist Yun says 8.5% is next level of resistance
- Rates on 30-year fixed mortgages hit 20-year high at 6.92%
Single family homes at a development in Aurora, Colorado.
Photographer: Chet Strange/BloombergThis article is for subscribers only.
Mortgage rates may head toward 8.5% if they break through the 7% threshold they’re on the verge of now, according to the chief economist of the National Association of Realtors.
That possibility is based on a technical analysis of mortgage rates from NAR’s Lawrence Yun, who studied key levels of resistance that borrowing costs will face after Thursday’s news that a closely watched measure of inflation hit a 40-year high.