Mortgage Rates in U.S. Surge to Highest Level in Three Months

U.S. Existing-Home Sales Surged In July By Most On Record
Photographer: Bing Guan/Bloomberg

Mortgage rates are moving up.

The average for a 30-year, fixed loan was 2.81%, up from 2.73% last week and the highest since November, Freddie Mac data showed Thursday. Rates have climbed from the record low of 2.65%, reached in early January.

Mortgage rates rose to a three-month high

Costlier loans may threaten the housing rally that has bolstered the pandemic-ravaged economy. Already, the tight supply of listings across the U.S. has sparked bidding wars and sent prices soaring. Many Americans want to buy homes, but have found little they can afford.

The yield on 10-year Treasuries, which typically guides mortgage rates, reached 1.3% this week, the highest in almost a year.

Mortgage rates have been below 3% since July as the Federal Reserve keeps a lid on borrowing costs.