The rate on the most popular US home loan rose last week to its highest in more than two years, after the Federal Reserve lifted short-term interest rates to combat inflation, and rising oil prices drove up Treasury yields that underpin residential borrowing costs.
The average 30-year fixed-rate mortgage jumped 15 basis points to 7.12% in the week ended September 18, the Mortgage Bankers Association said on Wednesday. It was last higher in May 2024.
Mortgage rates have risen more than a full percentage point since joint US-Israeli strikes against Iran began pushing up the global price of oil in late February, putting the squeeze on prospective homebuyers and a chill into the US housing market.
Ann Saphir | Yahoo Finance