US mortgage rates climb to highest since June, hitting 3.09%
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[WASHINGTON] US mortgage rates rose for a fifth straight week, reaching the highest level in nearly in nine months.
The average for a 30-year, fixed loan was 3.09 per cent, up from 3.05 per cent last week and the highest since June 25, Freddie Mac data showed Thursday.
Borrowing costs have been climbing since finding a nadir in January. While they remain low by historical standards, the rise threatens to crimp the pandemic housing rally. Mortgage companies posted record profits in 2020 amid a flood of applications to purchase homes and refinance debt.
With Covid-19 vaccines and stimulus spending fueling optimism about an economic rebound, investors have been betting that inflation will accelerate. The yield on the 10-year Treasuries that guide mortgage rates has ticked up above 1.7 per cent for the first time since January 2020.
BLOOMBERG
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