PROVIDENCE, R.I. (WPRI) — Mortgage rates hit an all-time high Tuesday, skyrocketing past 7% for the first time in nearly two decades, according to Mortgage News Daily.
The average 30-year mortgage rate dropped down to 6.82% Wednesday afternoon. But even so, Cross Country Mortgage’s Nicholas Caccia said the sky-high mortgage rates are unprecedented.
“Tuesday was the worst day I think I have ever seen in my career,” he explained. “It’s tough to go in and look at rates now [as compared to] where we were a year ago.”
The skyrocketing mortgage rates are a direct result of the Federal Reserve’s decision to boost interest rates for the third-straight time in an attempt to curb inflation.
Caccia said it’s no secret that fluctuating interest rates have an impact on the housing market.
“Inflation is the enemy of the mortgage market,” he explained. “The higher inflation is, the more it costs people and the higher rates are going to be.”
And it’s not just mortgage rates that are impacted. Caccia said other money lending options are actually bearing the brunt of it, including home equity loans, car loans and credits cards.
“That’s really what [the rate hikes] effect directly,” he said.