The price of gasoline has averaged $5 gallons; Mortgage rates are jumping
The price at the pump has reached an average of $5 a gallon in Massachusetts, a runaway high that is crushing household bank accounts during the wave of ultra-inflation that has destroyed the economy.
The average was $5.02 on Thursday, a dramatic jump from $4.79 just a week ago.
The national average for regular Thursday was $4.97 a gallon, according to AAA, up a quarter just last week and $1.90 more than drivers were paying a year ago.
GasBuddy, a service that helps drivers find deals on gasoline, said its data had the national average price of a gallon above $5 for the first time ever.
The price at the pump has been rising steadily for months, surpassing the $4 mark in early March. It tracks the cost of crude oil, which was rising even before Russia’s invasion of Ukraine sent oil soaring even higher following the announcement of broad sanctions against the country.
Mortgage rates are jumping
Average long-term U.S. mortgage rates jumped ahead of next week’s Federal Reserve meeting, where it is expected to announce another big hike in its key lending rate.
Mortgage buyer Freddie Mac reported Thursday that the 30-year rate jumped to 5.23% this week from 5.09% last week. A year ago at this time, the average rate was 2.96%. Until April, the average rate had not exceeded 5% for more than a decade.
Rapidly rising rates, along with sharply rising house prices, have pushed potential buyers out of the market.
Mortgage applications were down 6.5% from the previous week, the Mortgage Bankers Association reported on Wednesday. The group’s composite index, a measure of the volume of mortgage applications, is at its lowest level in 22 years.