Interest rates for the average 30-year mortgage resumed their upward trajectory after a slight drop the previous week, reaching their highest level since 2002, according to Freddie Mac. The average rate for a 30-year fixed-rate mortgage increased to 6.92% for the week ending Oct. 13, according to Freddie Mac's Primary Mortgage Market Survey. This is an increase from the previous week when it averaged 6.66% and remains significantly higher than the previous year when it was 3.05%.
Bank of America reported better-than-expected earnings results, sending the stock up nearly 5%. The Bank’s CEO Brian Moynihan said their consumers are financially resilient, despite high inflation and concerns the U.S. is nearing a recession. The bank’s customers continue to spend freely, using their credit cards and other payment methods for 10% more transaction volumes in September and the first half of October than a year earlier. Customers’ account balances remain higher than before the pandemic struck in early 2020, Moynihan said, indicating they were in a good position to continue spending. Finally, consumer credit remains pristine, with late-payment metrics still well below pre-2020 averages, indicating that so far, customers had little difficulty keeping up with their debt.
The British pound rose on more policy reversals from the UK government. New UK finance minister Jeremy Hunt announced that almost all planned tax cuts would be scrapped. The pound traded 2% higher at almost $1.14 per U.S. dollar.