![]() ![]() On the heels of better-than-expected inflation data for June, the average mortgage rate has eased a bit again. ![]() The average 30-year fixed rate, which had pierced 7% back in October, fell to just above 6% in early February before surging back to 6.96% in mid-July. The current national average for a 30-year fixed-rate mortgage, according to Freddie Mac, is 6.78%. If the economy does cool, Jacob Channel, senior economist for LendingTree, predicts that mortgage rates will end the year closer to 6% than to 7%. Those hikes, in turn, have made high-cost purchases out of reach for some. But some are a direct consequence of the Fed’s rate increases - the most aggressive in four decades. Some of those rejections reflect the subpar credit of loan applicants. Overall, the rejection rate for credit applicants reached 21.8 percent, the highest level since June 2018. In that same June 2022-June 2023 period, applicant rejections for credit cards, mortgages, mortgage refinancings and higher credit card limits all rose, too, according to the New York Fed. On top of all that, steadily higher auto loan rates have elbowed many would-be buyers out of the market.Ĭonsider: A study by the New York Federal Reserve has found that 14% of applicants for auto loans were rejected over the past year - the highest such proportion since the New York Fed began tracking the figure in 2013 - up from 9% in February.Īuto-loan applicants, of course, aren’t the only borrowers being turned down in larger numbers these days. Or that lenders have tightened credit standards. It’s not just that sticker prices are way up. Perhaps no one has felt the pain more than car buyers. So could rates on credit cards and some business loans. Mortgage rates, which have surged since the Fed began lifting rates in March 2022, may now rise further. NEW YORK (AP) - The Federal Reserve’s decision Wednesday to raise its benchmark rate for the 11th time, by a quarter-point, could once again send ripple effects across the economy. ![]()
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