Mortgage Rates in the U.S. Climb for a Fourth Week to Reach 7.17%

Mortgage rates in the US increased for a fourth straight week.

The average for a 30-year, fixed loan was 7.17%, up from 7.1% last week, Freddie Mac said in a statement Thursday.

House hunters looking to land a deal during the typically busy spring season are having to dig deeper to afford a purchase. Borrowing costs have climbed fairly steadily since the beginning of the year, and a shortage of listings is pushing up prices in most areas of the country.

Homebuilders have worked to fill the inventory void, stepping up production and luring customers with offers of cheaper financing and other incentives. Purchases of newly built properties jumped 8.8% last month from February to their fastest pace since September, government data showed this week. Contracts to buy previously owned homes also rose over the same period, the National Association of Realtors said Thursday.

Federal Reserve policymakers are scheduled to meet next week, and while no change to the central bank’s benchmark rate is expected, traders will be scrutinizing officials’ remarks for any further hints on when cuts might begin. The strength of recent economic reports suggests that time will come later rather than sooner.

Until then, would-be homebuyers — including current owners holding onto sub-4% loans — must either come to terms with higher-for-longer borrowing costs, or remain on the sidelines. Those willing to jump in may find advantages, according to Jiayi Xu, an economist at Realtor.com.

“Despite the increased mortgage rates leading to higher costs, it could also suggest a less competitive market where opportunities may exist for some homebuyers,” she said. “For instance, buyers may find that sellers are more open to negotiation compared to the previous year.”

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