US mortgage rates surge for fourth week
Feds have their eyes on increase.
Mortgage rates climbed for the fourth consecutive week, reaching the highest level since the start of the pandemic.
The average for a 30-year loan was 3.56%, up from 3.45% last week and the highest since mid-March 2020, Freddie Mac said in a statement Thursday.
Rates followed a recent jump in yields for 10-year Treasuries. Borrowing costs may continue to increase as the Federal Reserve eyes a rate hike to dampen surging inflation.
That could put the American dream of owning a home further out of reach for those already struggling to find affordable options. Rates plummeted to a record low roughly a year ago, and cheap borrowing costs have helped fuel a red-hot housing market that’s pumped up real estate prices.
“As a result of higher mortgage rates, purchase demand has modestly waned in advance of the spring home buying season,” Sam Khater, Freddie Mac chief economist, said in a statement. “However, supply remains near historically tight levels and home prices remain high.”
Still, borrowing costs may level off in the coming weeks, according to Keith Gumbinger, vice president at mortgage-information company HSH.com.
“We’re starting to see signs that we might be topping out on rates,” Gumbinger said in an interview. “The Federal Reserve has made a bit of a shift, but it’s not clear if the shift has completed yet.”
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