Ticker: Mortgage rates match this year’s high; Feds probe fatal Virginia Tesla crash

The average long-term U.S. mortgage rate rose this week to just under 7%, the latest setback for would-be homebuyers already facing affordability challenges due to a housing market limited by a shortage of homes for sale.

Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year home loan rose to 6.96% from 6.90% last week. A year ago, the rate averaged 5.22%.

It’s the third consecutive weekly increase for the average rate, which now matches its high for the year set on July 13. High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already unaffordable to many Americans.

“There is no doubt continued high rates will prolong affordability challenges longer than expected, particularly with home prices on the rise again,” said Sam Khater, Freddie Mac’s chief economist. “However, upward pressure on rates is the product of a resilient economy with low unemployment and strong wage growth, which historically has kept purchase demand solid.”

Feds probe fatal Virginia Tesla crash

U.S. auto safety regulators have sent a team to investigate a fatal crash in Virginia involving a Tesla suspected of running on a partially automated driving system.

The latest crash, which occurred in July, brings to 35 the number of Tesla crashes under investigation by the National Highway Traffic Safety Administration since June of 2016. In all the cases, the agency suspects the Teslas were operating on a partially automated driving system such as Autopilot. At least 17 people have died.

The safety agency said in documents Thursday that the Tesla ran beneath a heavy truck, but gave no further details.

Messages were left Thursday seeking comment from Tesla.

from Boston Herald https://ift.tt/FwNWq3m