Rising borrowing costs increase pressure on homebuyer budgets as oil prices climb
The benchmark 30-year fixed-rate mortgage rose to 6.58% from 6.55% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate stood at 6.74%.
MSI previously reported that the average rate had climbed to 6.55% the prior week. The latest increase brings the 30-year rate to its highest point since the 6.74% reading a year ago.
Higher mortgage rates translate into elevated monthly payments for prospective homebuyers, narrowing what households can afford. Freddie Mac said rising oil prices are already squeezing household budgets, compounding the affordability pressure from elevated mortgage costs.