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Mortgage Rates in the U.S. Jump to the Highest Level Since April

Mortgage Rates in the U.S. Jump to the Highest Level Since April

Mortgage rates in the U.S. climbed to a six-month high.

The average for a 30-year loan was 3.05%, up from 2.99% last week and the highest since early April, Freddie Mac data showed Thursday.

Mortgage Rates in the U.S. Jump to the Highest Level Since April

Rates tracked a jump in yields for 10-year Treasuries, which late last week reached the highest level since June. The Federal Reserve has signaled it’s preparing to taper its Covid-era bond purchases this year, a move that could further bump up borrowing costs. 

“As inflationary pressure builds due to the ongoing pandemic and tightening monetary policy, we expect rates to continue a modest upswing,” Sam Khater, Freddie Mac’s chief economist, said in a statement.

Rising rates would cut into purchasing power for potential homebuyers, who already are struggling to find properties they can afford. Competition for a tight supply of listings has driven up prices across the U.S.

©2021 Bloomberg L.P.