Why mortgage rates are going higher

IDAHO FALLS, Idaho (KXPI/KIFI) - Home affordability is now at its lowest level in decades due to mortgage rates rising again. The average rate on a 30-year fixed mortgage rose to 7.88% this week. It is up from 7.55% last week, according to Bankrate’s weekly national survey of large lenders. It is also the highest level since November 2000.

Eyewitness News anchor Todd Kunz spoke with Sean Finch from InterWest Mortgage in Idaho Falls about the levels he is seeing and what is behind the rise.

Bankrate.com is also showing that mortgage rates are tracking toward 8.0%.

The Central Bank has indicated it may keep rates higher for longer, due to stubborn inflation.

The higher rates and rising home prices are causing a 20% drop in the pace of home sales compared to this time last year.

Key jobs data will be released Friday and could determine the next move for the Fed when it comes to interest rates.