LOS ANGELES (AP) — The average long-term U.S. mortgage rate climbed to a new high for the year this week, pushing up borrowing costs for home buyers already facing heightened competition in a housing market short on homes.
The average rate on the benchmark 30-year home loan rose to 6.81% from 6.71% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 5.30%.
It’s the second consecutive week of higher rates, lifting the average rate to its highest level since it surged to 7.08% in early November. 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.
“These high rates combined with low inventory continue to price many potential home buyers out of the market,” said Sam Khater, Freddie Mac’s chief economist.
The latest uptick in mortgage rates follows a sharp upward move in the 10-year Treasury yield, which climbed above 4% this week for the first time since early March. More surprisingly hot jobs data Thursday pushed yields on the 10-year Treasury to 4.05% from 3.94% late Wednesday, which will influence mortgage rates and other important loans.
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Source: www.boston.com
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