Average long-term mortgage rises to 6.94% after marking fourth-straight increase
The average long-term U.S. mortgage rate rose for the fourth week in a row, another affordability setback for prospective homebuyers just as the spring homebuying season gets going
ByALEX VEIGA AP business writer
February 29, 2024, 11:16 AM
LOS ANGELES -- The average long-term U.S. mortgage rate rose for the fourth consecutive week, another setback for prospective homebuyers just as the spring homebuying season gets going.
The average rate on a 30-year mortgage rose to 6.94% from 6.90% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.65%. The average rate is now just below its highest level since mid-December, when it was 6.95%.
When mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already out of reach for many Americans. They also discourage homeowners who locked in rock-bottom rates two or three years ago from selling.
Rates have been creeping higher in recent weeks as reports showing stronger-than-expected inflation at the consumer and wholesale levels and the economy stoked worries among bond investors that the Federal Reserve will wait until later this year before it begins cutting interest rates. A closely followed inflation report on Thursday showed showed prices across the country rose pretty much as expected last month.
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