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[ad_1] House hunters may be in for sticker shock when it's time to get a home loan: The interest rate on a typical mortgage is now at its highest level since 2000. The Mortgage Bankers Association (MBA)  said Wednesday that the average rate on a conventional 30-year fixed-rate mortgage jumped to 7.31% last week, up from 7.16% the previous week.  Rates slid to well below 3% in 2020 as the housing market ground to a halt because of the pandemic, but began rising sharply the following year as the Federal Reserve launched its ongoing campaign to quash inflation. The spike in borrowing costs has driven many aspiring homebuyers out of the market: Mortgage applications are at a 28-year-low, according to the MBA. "Higher interest rates are continuing to impact homebuyers as their purchasing power has been greatly diminished by the doubling in mortgage rates over the past year and a half," Chris Zaccarelli, Chief Investment Officer for I

[ad_1] Mortgage rates are climbing again, raising the cost of a home loan to its highest level in seven months. The average rate on a typical 30-year mortgage is now 6.91%, up from 6.69% a week ago, the Mortgage Bankers Association (MBA)  said Wednesday. The average rate on a 15-year home loan increased to 6.41% from 6.15% a week ago.  Mortgage costs are rising largely because the Federal Reserve's year-long campaign to tame prices by lifting its benchmark rate has yet to bring inflation close to the central bank's 2% target, suggesting that more hikes may be necessary. "Inflation is still running too high, and recent economic data is beginning to convince investors that the Federal Reserve will not be cutting rates anytime soon," Mike Fratantoni, MBA's chief economist, said in a statement.  A percentage point increase to a mortgage rate can add  hundreds of dollars  to a property's monthly payments, depending

[ad_1] San Jose, California — Matthew Richmond makes a good living running a successful pest control company in Northern California's Silicon Valley. "I'm living the American dream," the 32-year-old told CBS News. Richmond can afford to pursue his passion for adventure. If he wants to buy a motorcycle or dirt bike, "I can go write the check and buy it," he said.  However, what he has not purchased is a home, even though he says he could afford one. "Somehow, we've been led to believe that you have to own a home in order to be living the American dream," said Ramit Sethi, host of the Netflix series "How to Get Rich." "And that's just not true. For a lot of people, renting can actually be a better financial decision." A study released  last month from Realtor.com found that U.S. median rental prices dropped in May for the first time since the start of the COVID-19