Mortgage Rates Hit Highest Level Since March 2020

Mortgage rates in the U.S. have hit the highest level since March of 2020. 

The average rate for a 30-year fixed-rate loan was 3.45% for the week ended Thursday, up from 3.22% a week ago, per the Wall Street Journal. 

Expectations that the Federal Reserve will raise interest rates multiple times this year are driving up mortgage rates, which are closely tied to the 10-year U.S. Treasury. 

Rates have now increased for three weeks in a row. A year ago, the rate on America’s most popular home loan was 2.79%, just above its record low of 2.65%. Still, rates remain near historic lows.

Higher borrowing costs, along with record-high home prices, could drive some buyers out of the market. The median price for existing homes increased 13.9% in November from a year earlier to $353,900, according to the National Association of Realtors.