The average long-term U.S. mortgage rate hit a three-month high this week, reflecting higher Treasury yields and expectations that the Federal Reserve will continue to raise its benchmark rate and keep it there until inflation recedes, according to an Associated Press report.
Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate rose to 6.65% from 6.5% last week. The average rate a year ago was 3.76%.
The average long-term rate reached a two-decade high of 7.08% in the fall as the Fed continued to raise its key lending rate in a bid to cool the economy and quash persistent, four-decade high inflation.
Rates came down this winter as it appeared inflation was steadily declining. But recent economic data reveal a still-hot economy and stubborn inflation. The recent rise in mortgage couldn’t come at worse time for the slumping housing market, on the verge of its spring buying season.
