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‘Pandemic home sales boom is over’: Mortgage rates hit highest level since 2009 as Fed pressures housing market

Mortgage rates are skyrocketing thanks to the Fed, but buyers who can endure this tough and changing market will be rewarded.

The 30-year fixed-rate mortgage averaged 5.27% for the week ending May 5, according to data released by Freddie Mac FMCC,
+0,97 %
Thursday. That’s an increase of 17 basis points from the previous week – one basis point equals one hundredth of a percentage point, or 1% of 1%.

This represents the highest point for the benchmark 30-year mortgage product since August 2009. To put this into context: the last time mortgage rates were this high, Barack Obama was just months away from his first term as president, the nation was in the depths of the Great Recession and Instagram had yet to launch.

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