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Mortgage demand plummeted to a 28-year low as the average long-term rate creeped up toward 8%.

According to leading real industry group Mortgage Bankers Association, the average rate on the benchmark 30-year home loan climbed to 7.53% this week — the highest rate since 2000.

A separate report on Bankrate showed that Thursday’s average on a 30-year fixed mortgage rate was even higher, 7.88%.

The rate was 6.75% at this time last year and mortgages below 3% were offered at the start of 2021. The mortgage rate hasn’t hit 8% since 1995.

Mortgage applications and applications to refinance a home have stalled dramatically, falling 6% and 7% for the week, respectively, according to MBA.

“The purchase market slowed to the lowest level of activity since 1995, as the rapid rise in rates pushed an increasing number of potential homebuyers out of the market,” MBA’s deputy chief economist Joel Kan told The Post.

The higher rates add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already unaffordable to many Americans.

They also discourage homeowners who locked in low rates two years ago from selling.

The lack of housing supply also weighs on sales of previously occupied US homes, which are down 22.3% through the first seven months of the year versus the same stretch in 2022.

In response, Kan noted that applications for adjustable-rate mortgages increased, making up 8% of purchase applications — up from 6.7% a month ago when interest rates sat around 7%.

ARMs typically offer lower interest rates, though they’re fixed for shorter periods of time.

Mortgage rates have been rising along with the 10-year Treasury yield, which has historically been considered a key benchmark for mortgage rates.

Thus, as mortgage rates near 8%, the 10- and 30-year Treasury yields have also reached new heights, hitting 4.8% and 4.925%, respectively, on Tuesday — both the highest since 2007.

The advances could keep upward pressure on inflation, giving the Federal Reserve reason to keep interest rates higher for longer.

In August, US inflation rose 3.7% from 2022. Though it’s still above the Fed’s 2% goal, it’s a stark difference from June 2022’s four-decade peak at 9.1%.

Inflation’s substantial cooldown in recent months has forced many home sellers to slash their asking prices to lure in potential buyers.

Those who don’t slash their asking price risk selling at a loss. Last month, a report by real estate brokerage Redfin revealed that home sellers in America’s major cities are already doing this.

San Francisco sellers had it the worst, Redfin’s report showed, as they are a whopping four times more likely than the average US home seller to take a loss.

Detroit is home to the second-highest share of homeowners who take a loss in their home-selling transactions, at 6.9%, followed by Chicago and New York, where 6.5% and 5.9% of homeowners take a loss in selling their homes, respectively.

Though the share of New York homeowners who reported a loss was half that in San Francisco, the cities were tied for the largest median loss in dollars, at $100,000, Redfin found in a separate analysis.

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Politics

Police could search for stolen goods without warrant under new law

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Police could search for stolen goods without warrant under new law

People who have tracked the location of their stolen mobile phones, laptops or bikes can expect swifter police action under new measures to be introduced to parliament today.

In a drive to tackle street crimes, officers will no longer need a warrant to enter a premises where stolen items have been electronically located, such as through a phone-tracking app or Bluetooth.

A police inspector will be able to sign off entry to a premises, rather than waiting for a judge or magistrate, in order to act during the “golden hour” just after a theft and increase the chances of a conviction, ministers said.

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It is one of a number of new powers in the Crime and Policing Bill, set to become law later this year, to address what the home secretary has called an “extremely frustrating” situation for victims of crime.

“Snatch thefts” of mobile phones and bags have more than doubled in the past year, with more than 200 incidents a day in 2024, according to Home Office figures. Just 0.8% of these thefts led to a charge, despite some victims offering police evidence from tracking devices.

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Police recover 1,000 stolen phones in a week

“For the last few years, our towns and cities have seen street theft shoot up, as organised gangs have been targeting mobile phones,” Home Secretary Yvette Cooper said.

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“But it is extremely frustrating for victims when they can see exactly where their stolen phone has gone but nothing is done. That is why we are determined to give the police the powers they need to move fast to crack down on these crimes that are blighting our communities.”

The powers will also apply to police retrieving stolen vehicles, tools or tractors which are geolocated. It comes alongside tougher measures for people in possession of signal jammers used to steal keyless cars, which would be punishable by up to five years in prison

The bill is a major update to existing crime legislation, with new measures to tackle knife crime, violence against women and girls, cyber crime, child sexual abuse and terrorism.

However, there are questions about how officers will have the capacity to attend to thousands of cases of stolen phones, with the government still planning to recruit an extra 13,000 community police officers as promised at the election.

Ministers have also proposed specific new criminal offences in the bill, for assaulting a shopworker – carrying a maximum sentence of six months; “cuckooing”, in which a vulnerable person’s home is used for illegal activities such as drug dealing; and climbing on war memorials. Other new crimes include spiking and using AI to produce child sexual abuse material.

The bill enshrines respect orders, which are already being piloted, to restrict the movement of people who persistently cause harm in their communities – with those who breach them to be charged with a criminal offence.

They are similar to the anti-social behaviour orders (Asbos) introduced under the last Labour government but with requirements such as attending anger management courses as well as prohibitions.

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An impact assessment of how these new offences will affect the overstretched prisons crisis will not be immediately published.

The home secretary said: “For too long communities have had to put up with rising town centre and street crime, and persistent antisocial behaviour, while neighbourhood police have been cut.

“And for years too little has been done to tackle the most serious violence of all including knife crime and violence against women and children.

“That is why the new Crime and Policing Bill is about taking back our streets and town centres, restoring respect for law and order, and giving the police and local communities the support and tools they need to tackle local crime.”

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World

Macron says Ukraine ceasefire ‘must not mean surrender’ – as Trump claims Russia wants ‘to end this war’

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Macron says Ukraine ceasefire 'must not mean surrender' - as Trump claims Russia wants 'to end this war'

Emmanuel Macron has said a peace deal with Russia “must not mean a surrender of Ukraine” – as Donald Trump claimed Vladimir Putin’s forces “want to end this war”.

The US and French presidents met amid fragile relations between America and Europe and after Mr Trump launched a verbal attack on Ukrainian President Volodymyr Zelenskyy.

Meeting in the White House on the third anniversary of Russia’s war in Ukraine, the French president said he and Mr Trump “made substantive steps forward during our discussions”.

Mr Macron told reporters that Europe should do more to bolster defence in the continent.

However, he stressed Russia “is the aggressor” in the conflict and added: “President Putin violated the peace.”

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Trump and Macron’s ‘friendly’ meeting

Peace must allow Kyiv ‘sovereignty’

The French leader then said: “We want peace, he wants peace. We want peace swiftly, but we don’t want an agreement that is weak.”

“This peace must not mean a surrender of Ukraine or a ceasefire without guarantees,” he added. “It must allow for Ukrainian sovereignty and allow Ukraine to negotiate with other stakeholders regarding the issues that affect it.

“It is also a country in which we need to shoulder our responsibilities so that we ensure security and stability for Ukraine and for the entire region.

“For Europeans, this is an existential issue.”

Read more:
Trump and Macron’s careful dance side-stepped divisions

Pic: Reuters
Image:
Macron said any peace deal ‘must not mean a surrender of Ukraine’. Pic: Reuters

‘Get this war stopped’

At a news conference following the talks, Mr Macron said he “fully believes” there is a path forward in negotiations.

He also agreed “there is good reason for President Trump to re-engage with President Putin” – a week after the leaders had a 90-minute-long phone call.

Mr Trump added Russia would accept European troops in Ukraine as part of peacekeeping efforts, adding: “I specifically asked him (Putin) that question. He has no problem with it.”

He told reporters: “When I got here, one of the first calls I made was to Putin and it was made with great respect. They want to end this war.”

Pic: AP
Image:
Mr Macron ‘fully believes’ there is a path forward with peace talks after meeting with Mr Trump. Pic: AP

Mr Trump then explained he wants to “get this war stopped,” whether that’s through a ceasefire or a direct agreement – but when asked if Ukraine should give up territory as part of any deal, he said: “We’ll see.”

The news conference came as Mr Putin said he is ready to discuss Russia cutting its defence budget alongside the US, saying a mutual drop of 50% would be a “good idea”.

The Russian president also touted a possible economic deal with the US, offering talks on a deal for its own rare earth metal supplies and for the sale of aluminium to American firms.

The US president is due to meet Sir Keir Starmer on Thursday, after the prime minister warned Mr Trump that a bad peace deal would be a “disaster for everyone”.

Read more from Sky News:
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Earlier on Monday, Mr Trump said he hoped Mr Zelenskyy would visit the US to sign a deal on Ukraine’s rare earth minerals soon.

Just last week, in a bitter exchange of words, Mr Trump called Ukraine’s leader a “dictator” and said he “better move fast or he is not going to have a country left” after Mr Zelenskyy had accused him of living in a Russian-made “disinformation space”.

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US

Macron says Ukraine ceasefire ‘must not mean surrender’ – as Trump claims Russia wants ‘to end this war’

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Macron says Ukraine ceasefire 'must not mean surrender' - as Trump claims Russia wants 'to end this war'

Emmanuel Macron has said a peace deal with Russia “must not mean a surrender of Ukraine” – as Donald Trump claimed Vladimir Putin’s forces “want to end this war”.

The US and French presidents met amid fragile relations between America and Europe and after Mr Trump launched a verbal attack on Ukrainian President Volodymyr Zelenskyy.

Meeting in the White House on the third anniversary of Russia’s war in Ukraine, the French president said he and Mr Trump “made substantive steps forward during our discussions”.

Mr Macron told reporters that Europe should do more to bolster defence in the continent.

However, he stressed Russia “is the aggressor” in the conflict and added: “President Putin violated the peace.”

Please use Chrome browser for a more accessible video player

Trump and Macron’s ‘friendly’ meeting

Peace must allow Kyiv ‘sovereignty’

The French leader then said: “We want peace, he wants peace. We want peace swiftly, but we don’t want an agreement that is weak.”

“This peace must not mean a surrender of Ukraine or a ceasefire without guarantees,” he added. “It must allow for Ukrainian sovereignty and allow Ukraine to negotiate with other stakeholders regarding the issues that affect it.

“It is also a country in which we need to shoulder our responsibilities so that we ensure security and stability for Ukraine and for the entire region.

“For Europeans, this is an existential issue.”

Read more:
Trump and Macron’s careful dance side-stepped divisions

Pic: Reuters
Image:
Macron said any peace deal ‘must not mean a surrender of Ukraine’. Pic: Reuters

‘Get this war stopped’

At a news conference following the talks, Mr Macron said he “fully believes” there is a path forward in negotiations.

He also agreed “there is good reason for President Trump to re-engage with President Putin” – a week after the leaders had a 90-minute-long phone call.

Mr Trump added Russia would accept European troops in Ukraine as part of peacekeeping efforts, adding: “I specifically asked him (Putin) that question. He has no problem with it.”

He told reporters: “When I got here, one of the first calls I made was to Putin and it was made with great respect. They want to end this war.”

Pic: AP
Image:
Mr Macron ‘fully believes’ there is a path forward with peace talks after meeting with Mr Trump. Pic: AP

Mr Trump then explained he wants to “get this war stopped,” whether that’s through a ceasefire or a direct agreement – but when asked if Ukraine should give up territory as part of any deal, he said: “We’ll see.”

The news conference came as Mr Putin said he is ready to discuss Russia cutting its defence budget alongside the US, saying a mutual drop of 50% would be a “good idea”.

The Russian president also touted a possible economic deal with the US, offering talks on a deal for its own rare earth metal supplies and for the sale of aluminium to American firms.

The US president is due to meet Sir Keir Starmer on Thursday, after the prime minister warned Mr Trump that a bad peace deal would be a “disaster for everyone”.

Read more from Sky News:
Johnson criticises Trump’s ‘ghastly’ Zelenskyy comments
US joins Russia to vote against UN resolution on Ukraine

Earlier on Monday, Mr Trump said he hoped Mr Zelenskyy would visit the US to sign a deal on Ukraine’s rare earth minerals soon.

Just last week, in a bitter exchange of words, Mr Trump called Ukraine’s leader a “dictator” and said he “better move fast or he is not going to have a country left” after Mr Zelenskyy had accused him of living in a Russian-made “disinformation space”.

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