Mortgage rates climb 5th-straight week

Long-term U.S. mortgage rates marked a fifth week of surges, reaching their highest levels this year.

Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed rate loan rose to 4.08 percent from 4.03 percent the previous week.

The rate on 15-year home loans, a popular choice for people who are refinancing, jumped to 3.34 percent from 3.25 percent.

Long-term mortgage and interest rates have climbed in the four weeks since Donald Trump’s victory on Nov. 8 to become the country’s next president.

The effect of advancing mortgage rates could be seen in reduced activity by prospective homebuyers. Applications for mortgage loans fell 9.4 percent in the week ended Nov. 25 from a week earlier, according to the Mortgage Bankers Association. Applications for refinancing dipped 16 percent.

Higher mortgage rates, along with rising house prices, could eventually reduce demand for housing.

To calculate average mortgage rates, Freddie Mac, the Federal Home Loan Mortgage Corp., surveys lenders across the country between Monday and Wednesday each week.

The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage was unchanged this week at 0.5 point. The fee on 15-year loans also remained at 0.5 point.