US mortgage rate above 6% first time in 14 years

Higher borrowing costs in the United States are fueling concern that people may put off home purchases and dampen the economy.
The average interest rate on a 30-year fixed mortgage rose above 6 percent for the first time since November 2008.

The US government-linked Federal Home Loan Mortgage Corporation says the average rate for the week up to September 15 stood at 6.02 percent.
That was a jump of 3.16 percentage points from a year earlier.

Long-term interest rates have been increasing in the US on the back of speculation that the Federal Reserve would keep raising its key rate.
The 30-year mortgage rate started to fall in March 2020 after the Fed decided to take massive monetary easing measures on the back of the coronavirus pandemic. It fell to as low as 2.65 percent in January last year.

But the Fed changed its policy in March this year and raised interest rates. This led lenders to increase their rates.

The sharp rise in borrowing costs is seen as having a potentially negative effect on the US economy.