WASHINGTON - The average long-term U.S. mortgage rate climbed this week to its highest level in more than two decades, bad news for homebuyers challenged by a housing market that remains competitive due to the lack of homes for sale.
Mortgage buyer Freddie Mac said Aug. 17 that the average rate on the benchmark 30-year home loan rose to 7.09%. A year ago, the rate was 5.13%.
It’s the fourth consecutive weekly increase for the average rate and the highest since April 2002 (7.13%).
The latest increase in rates follows a sharp uptick in the 10-year Treasury yield, which has been above 4% in August and climbing. The yield, which lenders use to price rates on mortgages, touched its highest level since October, and it’s close to where it was in 2007.
The yield has been rising as bond traders react to more reports showing the U.S. economy remains remarkably resilient. (The AP 08/17/23)
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