US Mortgage Rates Climb to the Highest Level in Nearly Seven Months

Source: Bloomberg

Mortgage rates in the United States continued to climb to hit the highest level in nearly seven months. XHB is up 1.80%.

• Rates have climbed along with the yields for treasuries, with the 30-year average up to 3.14%. This is the highest level since April 1.
• The latest increase will bring the monthly payment on a $300,000 mortgage to $1,288, up from $1,209 in January.
• The growth indicates higher borrowing costs amid the upcoming tapering of the Federal Reserve’s bond-buying program and possible rate hike.
• Higher mortgage rates will impact the spending of prospective homebuyers who are already stretching to be able to purchase a residence.
• An increase has been seen in property listings which could help bring down prices following the high demand this year.