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U.S. 30-Year Mortgage Rates Hit 7-Year Peak: Freddie Mac
Monday, May 21, 2018 6:50 AM

Interest rates on U.S. 30-year fixed-rate mortgages rose to the highest in seven years as a bond market selloff this week propelled 10-year yields to the highest since July 2011, Freddie Mac said on Thursday.

Higher borrowing costs have not yet caused a meaningful squeeze on the housing market, as underlying demand remains solid, Freddie Mac Chief Economist Sam Khater said.

“While this year’s higher mortgage rates have not caused much of a ripple in the strong demand levels for buying a home seen in most markets, inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the psyche of some prospective buyers,” he said in statement.

Thirty-year mortgage rates averaged 4.61 percent in the week ended May 17, matching the level last seen in May 2011. A week earlier, 30-year rates averaged 4.55 percent, the U.S. mortgage finance agency said.

Average 15-year mortgage rates rose to 4.08 percent in the latest week from 4.01 percent, while interest rates on five-year adjustable mortgages averaged 3.82 percent, up from 3.77 percent a week earlier, Freddie Mac said.

Worries about rising inflation and government borrowing lifted the 10-year Treasury yield US10YT=RR to 3.122 percent earlier Thursday, the highest since July 2011, Reuters data showed.

Source: Reuters