WASHINGTON (AP) – Long-term U.S. mortgage rates leaped this week to their highest levels in seven years amid global anxiety over rising interest rates that has gripped financial markets.
Costs for would-be homebuyers are climbing. Mortgage buyer Freddie Mac says the rate on 30-year, fixed-rate mortgages jumped to an average 4.90 percent this week from 4.71 percent last week. That’s the highest level for the benchmark rate since April 2011. A year ago, it stood at 3.91 percent.
The average rate on 15-year, fixed-rate loans rose to 4.29 percent this week from 4.15 percent last week.
The Federal Reserve recently signaled its confidence in the economy by raising a key interest rate for a third time this year, forecasting another rate hike before year’s end.