US mortgage rates climb to a nearly 4-year peak
WASHINGTON — Long-term U.S. mortgage rates jumped this week to their highest level in nearly four years, a sign that the prospect of higher inflation is steadily increasing the cost of borrowing to buy a home.
Mortgage buyer Freddie Mac said Thursday that the average rate on 30-year, fixed-rate mortgages rose to 4.38 per cent this week, up from 4.32 per cent last week and the highest since April 2014.
The rate on 15-year, fixed-rate loans rose to 3.84 per cent from 3.77 per cent last week.
Recent wage gains and rising prices are stoking concerns about inflation picking up, which has caused investors to seek higher interest rates. Mortgage rates are closely aligned with the yield on 10-year U.S. Treasury notes, which has climbed above 2.90 per cent from 2.78 per cent just two weeks ago.