Mortgage rates up for eighth week; 30-year rate at 4.43 percent

WASHINGTON — Long-term U.S. mortgage rates crept higher last week, marking the eighth straight week that it cost more to borrow to buy a home.

Mortgage buyer Freddie Mac said Thursday that the average rate on 30-year fixed-rate mortgages rose to 4.43 percent this week from 4.40 percent last week. The new average for the benchmark rate is the highest since January 2014.

The rate on 15-year, fixed-rate loans advanced to 3.90 percent from 3.85 percent last week.

Mortgage rates have risen steadily in January and February, as interest rates generally have increased in response to higher levels of government debt and expectations of rising inflation.

In addition to discouraging potential home buyers, rising rates also may prompt potential sellers to hold on to their homes, which are financed through lower interest rates.

Mortgage rates closely track the yield on 10-year U.S. Treasury notes, which have climbed to 2.85 percent as of Thursday from 2.46 percent at the start of the year.

Testimony to Congress on Tuesday by the new Federal Reserve chairman, Jerome Powell, conveyed optimism about the economy’s strength and held to the Fed’s projection of three hikes this year in its key policy rate.

Home affordability has become increasingly problematic for a growing number of would-be buyers. The recent jump in mortgage rates has increased their monthly costs, limiting how much they can pay for a house. Average home price increases are eclipsing wage growth.