The average interest rate on long-term mortgage loans in the United States rose this week to its highest level in more than six months, increasing borrowing costs during the peak activity period in the real estate market.
According to Freddie Mac, the average rate on 30-year loans reached 6.38%, compared to 6.22% last week and 6.65% during the same period last year. This marks the highest level since early September, when rates hit 6.5%.
Rising interest rates add financial pressure on homebuyers, limiting their purchasing power. Although rates had dropped to below 6% a few weeks ago, they have increased again due to rising oil prices linked to inflation concerns. Additionally, 15-year loan rates rose this week to 5.75%, compared to 5.54% last week and 5.89% last year, according to Freddie Mac.
