Mortgage rates on 30-year, fixed-rate loans climbed to 4.38 percent this week, the highest they have been since April 2014. The rates last week stood at 4.32 percent, according to mortgage buyer Freddie Mac.
The gains are a direct result of the rising yields for Treasury notes, which have been steadily increasing amid fears of an inflation, Bloomberg reported. The yield on the 10-year note reached above 2.94 percent this week, up from 2.78 percent two weeks ago.
Rising mortgages make it increasingly difficult for prospective homebuyers to own a home, especially in expensive states like California and New York.
Monthly payments on a $300,000, 30-year loan are now $1,499, up from $1,394 when the average rate stood at 3.78 percent.
The core consumer price index jumped 0.3 percent from December to January, according to a report from the U.S. Department of Labor. That hike, which was the biggest in a year, drove some analysts and investors to believe the Federal Reserve will increase interest rates again. [Bloomberg] — Natalie Hoberman