US mortgage rates increase for a fourth-straight week

US mortgage rates increased for a fourth week to the highest level since mid-November, according to the Mortgage Bankers Association (MBA).

The contract rate on a 30-year fixed mortgage rose 8 basis points to 6.79 per cent, the group said on Wednesday (Mar 8). The group’s index of mortgage applications to buy a home, however, increased. The data can be volatile around holidays, and the week followed Presidents’ Day.

Mortgage News Daily, which updates more frequently, put the 30-year rate at 7.03 per cent on Tuesday.

After easing into the start of the year, mortgage rates have been resurgent recently on the heightened prospect of more aggressive Federal Reserve policy. Chair Jerome Powell said on Tuesday the central bank is likely to lift borrowing costs higher and potentially faster than previously anticipated.

The MBA’s index of refinancing applications also increased in the week ended Mar 3. The gauge of overall mortgage applications rose 7.4 per cent.

The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75 per cent of all retail residential mortgage applications in the US.