Rates on long-term mortgages in the United States for the week ending June 16 rose at a record pace since 1987 against the backdrop of tightening monetary policy of the Federal Reserve, according to data from the state mortgage corporation Freddie Mac.
The average interest rate on a 30-year mortgage jumped by 55 basis points this week, to 5.78% compared with 5.23% per annum a week earlier.

The average interest rate on a 15-year mortgage increased by 43 bps, to 4.81% from 4.38%, and five-year mortgages rose by 21 bps, to 4.33%.

“Rates on 30-year mortgages increased by more than half a percentage point, which is the strongest weekly increase since 1987,” Freddie Mac chief economist Sam Hater said. “This reflects a change in expectations regarding inflation and the future course of monetary policy.”

On the eve of the Federal Reserve System increased the key interest rate by 75 basis points at once, the maximum since 1994, in an attempt to contain record high inflation.

The yield on 10-year US government bonds exceeded 3.42% during trading on Thursday. Bonds and mortgages are usually the first to react to a rise in the key rate.

The rates do not take into account potential commissions and other payments related to the mortgage. Freddie Mac calculates average rates based on data from about 80 organizations providing mortgage loans across the country


In 2021, the average American debt amounted to almost 100 thousand dollars, while a mortgage made a significant contribution to the increase in the volume of debts. Millions of citizens were unable to pay for house rentals and mortgages, despite government assistance. Most were unable to set aside funds for future housing payments, spending unemployment benefits and lump-sum payments from the state on more expensive goods and services.