7.09%! U.S. mortgage interest rates reach a 20-year high, indicating a significant cooling of the real estate market.

GMTEight Source, Thursday, U.S. housing finance institution Fannie Mae stated in a statement that as of August 17th, the average interest rate for 30-year fixed-rate mortgages in the U.S. was 7.09%, higher than last week's 6.96%, reaching the highest level since April 2002. In general, mortgage interest rates are not directly related to central bank monetary policy and often fluctuate with changes in the "anchor of global assets" -- the benchmark 10-year U.S. Treasury bond yield. On Wednesday, the 10-year U.S. Treasury yield reached its highest level since 2008. Fannie Mae Chief Economist Sam Khater said, "The U.S. economy continues to outperform expectations, and the rise in the 10-year U.S. Treasury yield has led to an increase in mortgage rates." In the case of the Federal Reserve implementing aggressive tightening policies to combat inflation, the real estate market is the most directly affected area. Higher borrowing costs have put buyers and sellers in a wait-and-see state, and the real estate market has clearly cooled down. According to data from Black Knight Inc, recent increases in borrowing costs, coupled with severe inventory shortages, have pushed up housing prices and suppressed housing affordability to the lowest level since 1984. In addition, limited housing supply, rising costs, and concerns about the economy have hindered many potential buyers, leading to a decline in existing home sales. Sam Khater added, "Demand is affected by unfavorable affordability factors, but low inventory remains the fundamental reason for the stagnation in home sales." The U.S. real estate market may continue to cool down as policymakers may continue to implement tightening policies. In the minutes of the July meeting released on Wednesday, the Federal Reserve expressed concern about the pace of inflation and stated that further interest rate hikes may be needed unless the situation changes. The minutes stated, "As inflation remains well above the committee's longer-run goal and the labor market remains tight, most participants continue to see significant upside risks to inflation that could necessitate further monetary policy tightening."