US common mortgage charges soar; 30-year at 3.01%
WASHINGTON (AP) – Average long-term mortgage rates soared this week as the 30-year benchmark loan climbed over 3%.
Mortgage buyer Freddie Mac reported Thursday that the average interest rate on a 30-year mortgage rose to 3.01% from 2.88% last week. Last year, the rate at this time was 2.88%. It peaked this year at 3.18% in April.
The interest rate on a 15 year loan, a popular option for homeowners refinancing their mortgages, rose from 2.15% last week to 2.28%.
One factor behind the upward pressure on interest rates was that last week the Federal Reserve signaled its belief that the economy has recovered enough from the pandemic recession to soon begin recalling the emergency aid it provided after the coronavirus spread. Emerging bottlenecks in the energy supply also played a role.
The yield on the main 10-year US Treasury bond hit its highest level since June this week. Returns, which can affect mortgage and other consumer credit interest rates, generally rise when bond prices fall.