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The average rate on 30-year fixed mortgages topped 6% this week, the highest level since 2008 and more than double the level a year ago.

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Freddie Mac said Thursday that its latest review of the primary mortgage market shows that the benchmark 30-year fixed note average rate rose again this week to 6.02%% from last week’s 5.89%.

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At the same time last year, 30-year fixed rate products averaged 2.86%.

The 15-year fixed note also rose, averaging 5.21% from 5.16% last week. It’s also more than double the average at the same time last year, when 15-year products were 2.12%.

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“Mortgage rates continued to rise along with higher-than-expected inflation readings this week, topping six percent for the first time since late 2008,” said Sam Hater, chief economist at Freddie Mac. “While rate hikes will continue to dampen demand and put downward pressure on home prices, inventories remain tight. This indicates that while the decline in house prices is likely to continue, it should not be large.”

Sign

While rates in the cooling housing market are currently at their highest levels since 2008, experts say the underlying causes of the current slowdown are nothing like what caused the crash that year.

“The law of supply and demand is never repealed, so we have a completely different situation where instead of a demand-driven crisis, we actually had a supply-driven crisis that greatly increased housing costs and house prices. This was stated by the CEO of the National Housing Conference, David Dworkin.Cavuto: coast to coast.”

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Dworkin noted that the 2008 market was “fuelled by toxic mortgages and people were getting teaser-based interest rates they couldn’t repay.”

sale of a new house

Pandemic-driven demand, fueled by historically low interest rates over the past few years, coupled with limited inventory, has pushed home prices to record highs, driving more potential buyers out of the market.

But prices remain high because supply remains tight and higher interest rates are expected to cool the market even more.

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Goldman Sachs warned in a recent note to clients that investors should brace for a worsening downturn, predicting the housing sector will slow sharply in the coming months.

Talia Kaplan of FOX Business and