LOS ANGELES (AP) — Prospective homebuyers are facing higher costs to finance a home with the average long-term U.S. mortgage rate moving above 7% this week to its highest level in nearly five months.
The average rate on a 30-year mortgage rose to 7.1% from 6.88% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.39%.
When mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford at a time when the U.S. housing market remains constrained by relatively few homes for sale and rising home prices.
“As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year,” said Sam Khater, Freddie Mac’s chief economist. “Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future.”
UN approves an updated cholera vaccine that could help fight a surge in cases
Ant and Dec discuss their emotional farewell to Saturday Night Takeaway after 22 years
Succession's Brian Cox stars in an American stage epic... but at three
‘An immortal of our incredible game’
A homeless man is reunited with his family after 13 years thanks to a Ford Mustang and a viral clip
Government agrees to slash road user charges for plug
Princess Charlene of Monaco debuts soft new look with feathery, face
Protesting Spanish professor 'warned university' over Confucius Institutes — Radio Free Asia
Robin Goodfellow's racing tips: Best bets for Friday, April 12
Paris Olympics opening ceremony on river Seine will last nearly 4 hours
First look: Prince Andrew 'car crash' interview with Emily Maitlis film trailer released by Netflix