Feb 16 2018 37430 1

Dated: 02/16/2018

Views: 33

Mortgage rates climb to almost four-year high

WASHINGTON (AP) – Feb. 15, 2018 – 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.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Blog author image

Team H and L Miami

Team H&L Miami @ Real Estate Empire Group is a fast growing boutique Real Estate firm established in 2001. It began to revolutionize property sales as well as marketing through brokers, agents, and an....

Latest Blog Posts

Jul 22 2018 37430 1

House Hunting Survival TipsPosted byTeam H&L Miami @Real Estate Empireon7/22/2018Searching for a new house that will meet your needs without breaking your budget can sometimes feel overwhelming!

Read More

Jul 21 2018 37430 1

Luxe Must-Have Bathroom Trends You Need Right NowPosted byTeam H&L Miami @Real Estate Empireon7/20/2018The bathroom is a room of sanctuary in the home. It is the one room where, for the most part,

Read More

Jul 15 2018 37430 1

Do You Need An Appraisal Contingency?Posted byTeam H&L Miami @Real Estate Empireon7/15/2018Once you have signed the purchase and sales agreement, the property will be appraised by a licensed

Read More

Jul 13 2018 37430 1

Is It Worthwhile to Invest in Home Improvements? Posted byTeam H&L Miami @Real Estate Empireon7/11/2018For a home seller who wants to maximize his or her house sale earnings, it may be beneficial

Read More