Mortgage rates in the U.S. rose above 3% for the first time in 10 weeks.
The average for a 30-year loan was 3.02%, up from 2.93% last week and the highest since April 15, Freddie Mac said Thursday.
“As the economy progresses and inflation remains elevated, we expect that rates will continue to gradually rise in the second half of the year,” Sam Khater, chief economist at Freddie Mac, said in a statement. “For those homeowners who have not yet refinanced – and there remain many borrowers who could benefit from doing so – now is the time.”
Mortgage rates, which hit a record low of 2.65% in January after plunging during the pandemic, have been hovering near 3% for several weeks. The cheaper borrowing costs have fueled the housing market, boosting buying power for Americans looking for properties.
Many homeowners have also been able to refinance their mortgages to save on monthly payments.
Even with the rise this week, mortgage rates are at historically low levels. And with demand for housing strong across the U.S., the jump above 3% is unlikely to slow things down, according to Tendayi Kapfidze, chief economist at LendingTree.
“It’s still a very attractive rate,” he said in an interview. “For someone who is trying to purchase a home, I don’t think this really changes your decision.”
