U.S. mortgage interest rates have climbed to their highest level in about a year, marking the fourth consecutive week of increases. This rise presents a new setback for prospective homebuyers hoping for a break from elevated home loan borrowing costs.
The benchmark 30-year fixed-rate mortgage reached an average of 6.66% on Thursday, up from 6.58% the previous week. For comparison, the average rate one year ago was 6.72%.
Rates are drifting higher as inflation concerns are fueled by the Federal Reserve's interest rate decision and war in the Middle East. A resumption of U.S.-Iran fighting has driven up both oil prices and the inflation-sensitive Treasury yields that underpin residential borrowing costs.