U.S. mortgage rates rose this week to the highest level since July, according to the Associated Press. The benchmark 30-year fixed rate loan rate rose to 6.91% from 6.85% last week, according to mortgage giant Freddie Mac. It was at 6.62% a year ago.
The uptick in the cost of home loans reflects a rise in the bond yields that lenders use as a guide to price mortgages. The increase is occurring with the price of homes rising steadily.
The average rate on a 15-year fixed-rate mortgage, popular with homeowners seeking to refinance, climbed to 6.13%, up from 6% and also the highest since July. It was at 5.89% a year ago.
Interest rates have climbed since the Federal Reserve signaled last month that it expects to cut its benchmark rate just twice this year, down from the four cuts it forecast in September.
