US mortgage rates up for fifth week at 7.22%

MORTGAGE rates in the US climbed for a fifth week, ratcheting up the pressure on homebuyers.

The average for a 30-year, fixed loan was 7.22 per cent, up from 7.17 per cent last week, Freddie Mac said in a statement on Thursday (May 2). 

High borrowing costs are squeezing buyers trying to crack into the market during one of its seasonally busiest times. House hunters aren’t getting a break. In the four weeks ending April 28, prices either rose or held steady from year-earlier levels in all 50 of the most populous US metro areas, according to Redfin Corp.

“On average, more than one-third of home sales for the entire year occur between March and June,” Sam Khater, Freddie Mac’s chief economist, said in the statement. “With two months left of this historically busy period, potential homebuyers will likely not see relief from rising rates anytime soon.”

Federal Reserve policymakers, who kept the central bank’s benchmark rate steady at a meeting Wednesday, left open the possibility of a rate cut this year while not committing to a specific timeframe. BLOOMBERG