Mortgage rates in the US climbed for the sixth week in a row.
(Bloomberg) — Mortgage rates in the US climbed for the sixth week in a row.
The average for a 30-year, fixed loan was 7.63%, up from 7.57% last week, Freddie Mac said in a statement Thursday.
Strong economic data is raising the possibility that the Federal Reserve may keep interest rates higher for longer. US consumer prices rose at a brisk pace for a second straight month in September, while jobless claims last week fell to the lowest level since January. In response, 10-year Treasury yields, a benchmark for mortgage rates, jumped to nearly 5%.
“While under typical circumstances, such positive data would be a reason for cheer among investors and businesses, it has now raised concerns regarding the inflation outlook and the likelihood of further Federal Reserve interest rate hikes,” Jiayi Xu, a Realtor.com economist, said in a statement.
While Freddie Mac’s 30-year mortgage rates have so far held below 8%, other measures, such as Mortgage News Daily, have already hit that mark.
Read More: US Existing-Home Sales Sink to Lowest Level Since 2010
Borrowing costs have weighed on purchases of previously owned homes, which dropped in September to the lowest level since 2010, National Association of Realtors data showed Thursday.
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