Mortgage rates rise: 30-year climbs to 6.39%

By AP News

U.S. mortgage rates rose this week for the first time in more than a month, at least a temporary setback for would-be home buyers and a housing market already reeling from more than a year of interest-rate hikes by the Federal Reserve

Mortgage Rates

WASHINGTON (AP) —

U.S. mortgage rates rose this week for the first time in more than a month, at least a temporary setback for would-be home buyers and a housing market already reeling from more than a year of interest-rate hikes by the Federal Reserve.

Mortgage buyer Freddie Mac said Thursday that that average fixed-rate 30-year mortgage edged up to 6.39% from 6.27% the week before. A year ago, the average rate was 5.11%.

The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, also rose — to 5.76% from 5.54% a week earlier.

The Fed, responding to a surge in inflation that last year hit a four-decade high, has raised its benchmark interest rate nine times in just over a year. Mortgage rates surged — to a two-decade high of 7.08% last fall. But rates had fallen five straight weeks before the upturn this week.

Higher borrowing costs have taken a toll on the housing market. The National Association of Realtors reported Thursday that sales of existing U.S. homes fell 2.4% from February to March at an annual rate of 4.44 million — signaling a disappointing start to the spring homebuying season. Median home prices fell to $375,700 — down 0.9% from a year ago, biggest year-over-year drop since January 2012.

Investment in U.S. housing has dropped for seven straight quarters — including freefalls at an annual rate of 27.1% from July through September and 25.1% from October through December last year.

Explore more on these topics:

Share:

IMPORTANT NOTICE AND DISCLAIMER

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

Sign up for Investing Intel Newsletter