Mortgage Rates Surpass 2022 Peak, Reaching 21-Year High

30-year fixed-rate mortgage rates averaged 7.09% during the week of August 17, the highest level since 2002, according to data released by Freddie Mac. 

The Details: While headlines frequently cited the mortgage data as a “21-year high,” Thursday’s rate was just 0.01 points higher than November 2022’s 7.08% peak, reported at the time as a “20-year high.” Mortgage rates previously peaked in March 2002 at 7.18% before dropping to 6.99% the following month. 

Key Caveat: Some sources, like CNBC (Center bias) and Axios (Lean Left bias), reported a rate of 7.16%, not 7.09%. This was likely because they used data from the Mortgage Bankers Association (link), not Freddie Mac (link). 

For Context: The Federal Reserve’s interest rate hikes, while producing a decline in inflation, have also raised the cost of borrowing for mortgages and other loans. Overall, mortgage rates rose sharply throughout 2022, fell during the first half of 2023, and have since narrowly overtaken 2022’s peak. As a result, mortgage applications dropped 29% since August 2022. 

How the Media Covered It: Coverage was common, particularly in Center and Lean Left-rated business outlets. Headlines across the spectrum emphasized the “highest since 2002” framing, a potential example of sensationalism; some sources like CNN Business (Lean Left bias) said rates “surged.”