Top Stories

Feb 15, 11:00 AM EST

US mortgage rates climb to a nearly 4-year peak

AP Photo
AP Photo/Steven Senne

Latest News
Mortgages get more expensive as rates hit near 4-year peak

US mortgage rates climb to a nearly 4-year peak

Long-term US mortgage rates rise for sixth consecutive week

Long-term US mortgage rates rise for fifth straight week

WASHINGTON (AP) -- 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 percent this week, up from 4.32 percent last week and the highest since April 2014.

The rate on 15-year, fixed-rate loans rose to 3.84 percent from 3.77 percent 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 percent from 2.78 percent just two weeks ago.

The low mortgage rates had eased some of the price pressures facing would-be homebuyers. The shrinking inventory of sales listings has caused prices to increase at roughly double the gains in average hourly earnings, making it harder to save for a down payment and purchase a home.

But homebuyers had the benefit of average 30-year mortgages that were 3.78 percent in September. If mortgage rates keep rising at a quick pace, it could limit what people can afford to pay and cause demand for housing to fall.

© 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.

  • 490 First Avenue South
  • St. Petersburg, FL 33701
  • 727-893-8111