Mortgage rates rose to their highest level in 21 years Thursday, Aug. 17, according to Freddie Mac, also known as Federal Home Loan Mortgage Corp.
The 30-year fixed rate mortgage averaged 7.09%, up from 6.96% a week earlier.
Last week's average is the highest the long-term fixed mortgage has been since April 2002, when it was 7.12%.
Mortgage rates have been on the increase since the Federal Reserve began its historic rise in interest rates in an effort to wrestle inflation to a maximum 2% level.
Buying a home is now more expensive because of the added cost of financing a mortgage.
"This is a difficult housing market," said Terry Baker, association executive for Southeast Missouri REALTORS. "For buyers and sellers seeking to make a move in this market, hiring a professional to advise them through the process is a wise move."
National Association of REALTORS said the combination of low inventory of available homes for sale and high costs has resulted in home sales about 20% lower than a year ago.
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