Mortgage rates hit highest level in a year as home price soar
U.S. mortgage rates have reached their highest level in a year, with the 30-year fixed rate climbing to 6.66%. This increase is driven by inflation concerns and rising Treasury yields, further straining the purchasing power of prospective homebuyers.
Why it matters
Rising borrowing costs significantly impact the housing market by reducing affordability and slowing down home sales across the United States.
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The average long-term U.S. mortgage rate rose for the fourth consecutive week to its highest level in a year, another setback for prospective homebuyers hoping for a break from elevated home loan borrowing costs.
The benchmark 30-year fixed rate mortgage rate rose to 6.66% from 6.58% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.72%.
Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting homebuyers’ purchasing power. As rates rise, that can lead prospective home shoppers to delay buying a home, one reason U.S. home sales have been sluggish this year .
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