Mortgage rates in the US rose to the highest level in two years before the pandemic struck financial markets.
- The average for a 30-year loan increased to 3.69% from 3.55% the previous week. That level was the highest since January 2020, when the rates hovered at 3.72%.
- Borrowing costs resumed their upward trajectory after remaining relatively steady for nearly a month. They tracked an increase in yields for 10-year Treasuries, which are heading to 2%.
- High inflation and unexpectedly strong jobs report for January are likely to pave the way for the Fed to hike interest rates, making mortgages more expensive.
- Sam Khater, Freddie Mac’s chief economist, stated that the normalization of the economy progresses as mortgage rates soared to the highest since the start of the pandemic.
Meanwhile, rising rates may be pushing buyers to enter the market before costs increase even further.
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