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US Mortgage Rates Top 7% for the First Time in 2 Decades
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US Mortgage Rates Top 7% for the First Time in 2 Decades

By MATT OTT and ALEX VEIGA, AP Business WritersWASHINGTON (AP) — The average long-term U.S. mortgage rate topped 7% for the first time in more than two decades this week, a result of the Federal Reserve's aggressive rate hikes intended to tame the nation's stubbornly high inflation.Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate jumped to 7.08% from 6.94% last week. Last year at this time, rates on a 30-year mortgage averaged 3.14%.Higher mortgage rates reduce homebuyers’ purchasing power, resulting in fewer people being able to afford to buy a home at a time when home prices continue to climb, albeit more slowly than earlier this year. The combination of higher rates and home prices means a typical mortgage payment for a homebuyer is up hundreds of...