The average long-term US mortgage rate fell to 7.12%, second weekly drop since marking 22-year high
The average long-term U.S. mortgage rate fell again this week, but remains near the 22-year high it hit three weeks ago, little relief for house hunters facing a market held back by persistently high prices and a near-historic low number of homes for sale
LOS ANGELES — The average long-term U.S. mortgage rate fell again this week, but remains near the 22-year high it hit three weeks ago, little relief for house hunters facing persistently high prices and a near-historic low number of homes for sale.
Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year home loan fell to 7.12% from 7.18% last week. A year ago, the rate averaged 5.89%.
The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, fell to 6.52% from 6.55% last week. A year ago, it averaged 5.16%, Freddie Mac said.
High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already unaffordable to many Americans. They also discourage homeowners who locked in low rates two years ago from selling.
Mortgage rates have been climbing in recent weeks, echoing moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans.
The yield, which two weeks ago neared its highest level since 2007, has been hovering above 4% since August as bond traders weigh whether recent economic data increase the likelihood that the Federal Reserve will decide it needs to keep interest rates higher for longer to lower inflation.
Bond yields rose earlier in the week after a report showed stronger growth for U.S. services industries last month than economists expected. Yields remained high after a report on Thursday said fewer U.S. workers
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