Generationally high interest rates continue to drag down Florida's housing market

The chief economist for mortgage backer Freddie Mac says interest rates have hit their highest level in a generation and will continue to slow the housing market for the foreseeable future.

Sam Khater made the statement Thursday as Freddie Mac released its Primary Mortgage Survey for the first week of October. The report showed interest rates for a 30-year mortgage had reached an average of 7.49%, up from 6.66% percent a year ago and 2.99% during the first week of October in 2021.

According to a Freddie Mac spreadsheet tracking interest rates since 1971, the last time the average 30-year rate was this high was the final full month of Bill Clinton’s presidency. On Dec. 8, 2000, the average rate was 7.54%. It dropped to 7.42% the following week and had not reached that Dec. 8 level again until now.