Long-term mortgage rates in the United States hit 3.69%, their highest level in 2 years

Average long-term mortgage rates in the United States jumped last week to their highest level in more than two years, potentially throwing some home buyers out of the market as Americans are squeezed by higher costs for just about everything .

The average rate on the 30-year loan jumped nearly a quarter point to 3.69% last week, mortgage buyer Freddie Mac reported on Thursday. After rising by almost half a point at the start of the year, the average long-term rate remained stable for three weeks. A year ago, the long-term rate was 2.73%.

While still historically low, the average 30-year mortgage rate hasn’t been this high since the first week of January 2020, when it was 3.72%.

The average rate for 15-year fixed-rate mortgages, popular among home refinancers, was 2.93%. It was 2.77% a year ago.

The Federal Reserve has signaled it will begin the first in a series of interest rate hikes in March, reversing pandemic-era policies that have fueled hiring and growth but are also contributing to rising levels of unemployment. inflation not seen for forty years.

The Labor Department said Thursday that consumer prices jumped 7.5% last month from 12 months earlier, the biggest year-over-year increase since February 1982. The rise in costs for just about everything hammered consumers, wiping out wage increases and bolstering the Federal Reserve. decision to start raising borrowing rates across the economy.

House prices have risen again. Depending on where you are looking to live, the price of a new home has increased by around 14% overall and up to 30% in some cities. Housing was scarce even before the pandemic, and rising prices and rising interest rates will make it even harder for those looking to move to buy a new home.

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