Mortgage rates rose again this week to 7.17%, the highest level since November.
Yahoo Finance’s Gabriella Cruz-Martinez reports:
Mortgage rates continued to rise above the 7% threshold this week, discouraging price-sensitive buyers from following suit.
Rates on 30-year fixed-rate mortgages rose to 7.17% on Thursday, up from 7.1% the previous week, according to Freddie Mac. Rates rose above 7% last week for the first time this year after a government report showed inflation remained higher than expected.
A separate index that tracks interest rate changes daily revealed even bigger swings: The daily rate on the popular 30-year fixed loan hit 7.52% on Thursday, the highest since November 2023, according to Mortgage News Daily.
Rising interest rates have been a drag on prospective buyers hoping to get into the market this spring, forcing some first-time and repeat buyers back to the sidelines.
Jiayu Xu, an economist at Realtor.com, said any hope of interest rates stabilizing hinges on inflation.
“Unfortunately, the rise in mortgage rates comes at a time when the housing market is typically active, which may discourage potential homebuyers from making purchase decisions,” Xu said. “While rising mortgage rates lead to higher costs, they also signal a less competitive market, which could mean opportunities exist for some homebuyers.”