Central Banks Continues to Raise Rates, While U.S. Mortgage Rate Jumps to Highest Since 2001
Posted on 10/26/2022
Data from the Mortgage Bankers Association (MBA) shows the average contract rate on a 30-year fixed-rate mortgage rose by 22 basis points to 7.16% for the week ended October 21, 2022. Overall, demand for mortgages is at the lowest level since 1997.
Bank of Canada Raises Policy Interest Rate to 3.75%
The Bank of Canada increased its policy interest rate 50 basis points to 3.75%. The Bank of Canada announced a smaller-than-expected interest rate hike. Bank of Canada Governor Tiff Macklem said the Bank of Canada is “getting closer” to the end of interest rate rises and assessing the effects of higher rates on economic activity.
In October 2022, the Reserve Bank of Australia (RBA) surprised markets but enacting a smaller-than-expected interest rate hike. According to RBA minutes from the October 4, 2022, meeting, two options were considered before the bank eventually raised its cash rate by 25 basis points to 2.6%, a nine-year high.
