Benchmark U.S. mortgage rates inched closer to the 7 percent mark last week as long-dated Treasury yields climbed to their highest levels since the spring.
According to Freddie Mac’s Primary Mortgage Market Survey, the average contract interest rate on 30-year fixed-rate mortgages reached a six-month high of 6.91 percent for the week ending Jan. 2. This is up 6 basis points from last week and 29 basis points from a year ago.
The average 15-year fixed-rate mortgage also reached a six-month high of 6.13 percent, rising 13 basis points from a week ago.
“Inching up to just shy of 7 percent, mortgage rates reached their highest point in nearly six months,” Sam Khater, chief economist at Freddie Mac, said in a statement. “Compared to this time last year, rates are elevated and the market’s affordability headwinds persist. However, buyers appear to be more inclined to get off the sidelines as pending home sales rise.”…