Long-term mortgage rates rise again; 30-year breaches 4.5%

Average long-term U.S. mortgage rates rose again this week as the key 30-year loan rate breached 4.5% and attained its highest level since the end of 2018

WASHINGTON -- Average long-term U.S. mortgage rates rose again this week as the key 30-year loan rate vaulted over 4.5% and attained its highest level since the end of 2018.

Against a backdrop of inflation at a four-decade high, the increases in home loan rates come a few weeks after the Federal Reserve raised by a quarter point its benchmark short-term interest rate — which it had kept near zero since the pandemic recession struck two years ago — to cool the economy. The central bank has signaled potentially up to seven additional rate hikes this year.

The developments mean that mortgage rates likely will continue to rise over the year.

Mortgage buyer Freddie Mac reported Thursday that the average rate on the 30-year loan this week rose to 4.67% from 4.42% last week. That’s a sharp contrast from last year’s record-low mortgage rates of around 3%. A year ago, the 30-year rate stood at 3.18%.