(KNSI) – The price is back up at the gas pump, which is bad news for those looking to buy a home.
With oil prices at nearly $95 per barrel, that is trickling down to the cost to fill up. Regular unleaded has surged in the last month to $3.85 per gallon at the national level. Financial markets expect that will keep the Federal Reserve locked into higher interest rates for longer.
The yield on the 10-year Treasury rose Monday to over 4.5%, a level not been seen since 2007. Mortgage rates are tracking upwards, too. The cost to finance a home purchase over 30 years has reached nearly 8%.
Meanwhile, housing prices continue to hover near record highs. It is taking an already historic affordability crisis and making it worse, pushing potential buyers to the sideline. The Mortgage Bankers Association says its purchase index has fallen from 350 in late 2021 to 141 this past summer, a decline of about 60%.
Rising treasury rates also impact financing for buying a new car. Auto loans are averaging about 10% interest rates. Several years of high inflation are forcing some consumers to turn to credit cards. Any outstanding balances are subject to the highest interest rates on record.
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