US mortgage rates are up; 30-year is at 7-year high of 4.72 percent
Long-term mortgage rates are up for the fifth straight week, with the 30-year rate reaching its highest level in seven-plus years.
WASHINGTON — Long-term US mortgage rates are up for the fifth straight week, with the key 30-year rate reaching its highest level in more than seven years.
Costs for would-be home buyers continue to climb. Mortgage buyer Freddie Mac said that the average rate on 30-year fixed-rate mortgages jumped to 4.72 percent last week from 4.65 percent. The average benchmark rate has risen from 3.83 percent a year ago.
The average rate on 15-year fixed-rate loans increased to 4.16 percent from 4.11 percent.
The Federal Reserve signaled its confidence in the economy on Wednesday by raising a key interest rate for a third time this year, forecasting another rate hike before year’s end.
The strong economy and anticipation of more short-term rate hikes by the Fed are helping drive the increase in mortgage rates.
Economists believe the country is on track for annual growth this year of around 3 percent. That would be the best performance since 2005, three years before the 2008 financial crisis pushed the United States into the worst recession since the 1930s.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week.
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