Average Mortgage Rates for 30-Year Loans in the U.S. Hit Highest Level Since July

Foreks - In the United States, the average interest rate for 30-year fixed mortgages has risen to its highest level since mid-July for the second consecutive week, reflecting the recent surge in bond yields that lenders use as a benchmark for pricing home loans. Mortgage buyer Freddie Mac announced that the rate increased from 6.72% last week to 6.85%. A year ago, the average rate for a 30-year mortgage was 6.61%. The average rate has reached its highest level since the week of July 11, when it was 6.89%. After dropping to the lowest level in two years at 6.08% in September, the rate had risen as high as 7.22% in May.

Most economists predict that the average rate for a 30-year mortgage will remain above 6% over the next year, with some suggesting it could rise as high as 6.8%. This range would be largely consistent with where rates have trended this year.

The borrowing costs for 15-year fixed-rate mortgages, which are popular among homeowners looking to refinance at a lower rate, also increased this week. The average rate rose to 6%, up from 5.92% last week. Freddie Mac noted that a year ago, this rate was 5.93% on average.

High mortgage rates and rising home prices are keeping many potential homebuyers from purchasing homes. While existing home sales in the U.S. increased for the second consecutive month in November, the housing market is in decline and is on track for its worst year since 1995.