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.”
Hanna Cavinder announces RETURN to college basketball with Miami
VOX POPULI: Use of honorifics complex at times and not always appropriate
VOX POPULI: Manga artist exposes the juicy dynamics behind ‘oden’ factions
Princess of Wales: Data watchdog 'assessing' Kate privacy breach claims
Free agency left the Ravens with holes to fill as NFL draft nears, especially on the offensive line
VOX POPULI: Abe faction’s ‘amended’ funds report is simply worthless
Weather updates: Warnings across South Island, Taranaki, Coromandel, Bay of Plenty
Immigration tightening might only be temporary
As earnings season rolls into its heart, hopes rise for broader gains
VOX POPULI: Nikkei index soars but real economy still feels sluggish
Armenian victims group ask International Criminal Court to investigate genocide claim
VOX POPULI: Use of honorifics complex at times and not always appropriate