U.S. mortgage rates have surged to their highest point in four months this week, and there’s potential for further increases due to concerns that President-elect Donald Trump’s economic policies could fuel inflationary pressures.
The average interest rate on the widely-used 30-year fixed mortgage rose to 6.79% from last week’s 6.72%, marking the highest rate since July, as reported by mortgage finance firm Freddie Mac on Thursday.
This recent increase marks the sixth consecutive weekly rise, adding up to a 71-basis-point increase since the end of September.
With housing supply still below pre-pandemic levels, these elevated mortgage rates, coupled with high home prices, have stifled sales of existing homes, which reached a 14-year low in September.
Recent comments