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.”
An earthquake measuring 5.6 hits central Turkey. No immediate reports of casualties or damage
Fury at 'insane' NYC cops who fined mother for letting her four
Thierry Henry predicts Phil Foden's stunning goal in 3
Video of kids playing chicken with train on Ngāruawāhia bridge highlights ongoing problem
Arkansas Supreme Court says new DNA testing can be sought in 'West Memphis 3' case
Nicole Brown Simpson documentary in production at Lifetime as 30
Mariska Hargitay is mistaken for real
9/11 first responder 'who shot a man dead in a South Carolina Chick