Mortgage rates climb to 6% for the first time since 2008

The average interest rate on a 30-year home loan has hit 6% for the first time since 2008, the Mortgage Bankers Association said Wednesday,.

The 6% rate is "essentially double what it was a year ago," Joel Kan, associate vice president of economic and industry forecasting at the trade group, said in a statement Wednesday. The higher mortgage rate has "contributed to more homebuyers staying on the sidelines," he added.

Rising home ownership costs are deterring some prospective buyers, with mortgage applications falling 1.2% last week from the previous period, the association said. In another sign of the chill from higher mortgage costs, the percentage of existing homes fell every month during the first half of 2022, according to the National Association of Realtors.