Mortgage rates rise in the United States, exceeding 3% for the first time since June
(Bloomberg) – Mortgage rates in the United States have crossed 3% for the first time in three months.
The average for a 30-year loan was 3.01%, down from 2.88% last week and the highest since June 24. Freddie mac (OTC 🙂 said in a statement Thursday.
Historically low borrowing costs have helped fuel the pandemic housing recovery, with a shortage of available housing driving up prices as Americans seek larger properties in the suburbs.
If rates continue to rise, it could help moderate the price spike, according to Sam Khater, chief economist at Freddie Mac.
“We expect mortgage rates to continue to rise slightly, which will likely impact home prices, causing them to slow slightly after rising over the past year,” Khater said.
Many potential buyers struggled to find homes they could afford, or lost auction wars in a market where cash bids dominated. This has fueled growing concerns about affordability, especially for renters looking to become homeowners.
Read more: First-time buyers get crushed in the fierce US real estate market
The 30-year average sank in 2020 and hit a record low of 2.65% earlier this year. It has climbed since then, following 10-year Treasury yields, which have been above 1% since January.
The 10-year rate rose above 1.5% this week for the first time since June.
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