U.S. Mortgage Rates Climb Back Above 3%
(Bloomberg) -- U.S. mortgage rates surged back above 3%.
The average rate for a 30-year loan was 3.10%, up from 2.98% last week and the highest since Oct. 28, Freddie Mac said Thursday.
Borrowing costs rose along with yields for 10-year Treasuries, which climbed to 1.63% on Tuesday.
Rates, which have been historically low for well over a year, have seesawed in recent weeks as investors prepare for the Federal Reserve to begin scaling back its bond purchases.
Rising housing costs are in focus as Americans find it increasingly difficult to buy a home. Lower borrowing costs throughout the pandemic have pushed up real estate prices and contributed to a shortage of available properties.
This week’s increase doesn’t change the fact that mortgage rates “are still lower than anything seen prior to summer of 2020,” said Greg McBride, chief financial analyst at Bankrate.com.
Homeowners who haven’t yet refinanced may want to consider that now, he said -- “especially when the cost of everything else is on the rise.”
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