Washington — US mortgage rates rose this week to their highest level since July.
According to major mortgage lender Freddie Mac, the benchmark 30-year fixed rate loan rate rose to 6.91% from 6.85% last week. A year ago, it was 6.62%.
The rise in mortgage costs reflects rising bond yields, which lenders use as a guide to pricing mortgages.
The average interest rate on 15-year fixed-rate mortgages, popular among homeowners looking to refinance, rose from 6% to 6.13%, also the highest level since July. A year ago, it was 5.89%.
Interest rates have been rising since the Federal Reserve last month said it expected to raise its benchmark interest rate only twice this year, down from the four cuts expected in September.
The Fed is pumping the brakes because, while inflation has fallen from the highs it reached in mid-2022, it remains above the central bank’s 2% target. Economists also worry that President-elect Donald Trump’s economic policies, particularly his plans to significantly raise tariffs on imported goods, could accelerate inflation.
