Last week, mortgage rates hit a three-year high—a headline that has been on repeat for several months.
In fact, in less than four months, the rate has risen a percentage point. The average rate on 30-year fixed home loans rose to 6.49% for the week ending July 9—now it stands at 7.40% for the week ending Oct. 8, up 12 basis points from 7.28% the previous week, according to Freddie Mac.
The question now becomes when will the rates hit a breaking point—and could that breaking point be an 8% rate?