US Mortgage Rates Reach Highest Level in Nearly Three Years
The average rate on long-term U.S. home loans has climbed for the seventh consecutive week, reaching its highest point in nearly three years. The benchmark 30-year fixed-rate mortgage averaged 7.40%.
The average rate for long-term U.S. home loans has risen for the seventh week in a row, reaching its highest level in nearly three years, according to mortgage buyer Freddie Mac. The benchmark 30-year fixed-rate mortgage climbed to 7.40% from 7.28% last week. A year ago, the average rate stood at 6.30%.
The elevated interest rate environment has largely stalled the U.S. housing market this year. The higher rates increase monthly costs for borrowers by hundreds of dollars, reducing purchasing power and prompting many to postpone home purchases.
Borrowing costs for 15-year fixed-rate mortgages also increased this week, with the average rate rising to 6.73% from 6.60% last week. A year ago, this rate was 5.53%. Mortgage rates are influenced by inflation, Federal Reserve policy, and bond market expectations for the economy.
Demand for mortgages has decreased as rates climb. Both home purchase and refinance mortgage applications have been on the decline, signaling a slowdown in the housing market and indicating households are unwilling or unable to take on new or refinance existing loans under current conditions.