U.S. mortgage rates climb to highest mark since 2013

WASHINGTON — Longterm U.S. mortgage rates continued to climb last week, reaching their highest level in more than four years and denting prospective home purchasers’ prospects amid the spring buying season.

It was the third straight week of increases for longterm mortgage rates. Mortgage buyer Freddie Mac said Thursday the average rate on 30-year, fixed-rate mortgages jumped to 4.58 percent from 4.47 percent last week. By contrast, the benchmark rate averaged 4.03 percent a year ago.

The average rate on 15year, fixed-rate loans rose to 4.02 percent from 3.94 percent the week prior.

Spiking interest rates on U.S. Treasury bonds, driven by rising commodity prices that boosted inflation expectations, helped lift long-term mortgage rates to their highest level since August 2013.

The interest paid by the government on its debt has been rising. The yield on the key 10-year Treasury note reached its highest level since January 2014 this week, blowing past 3 percent to 3.03 percent. In addition to influencing home borrowing costs, the 10-year rate also is tied to auto loans and other consumer credit.

Despite the increase in mortgage rates, homebuyers have snapped up newly built houses as the economic outlook has continued to improve in recent months. Sales of new U.S. homes jumped 4 percent in March.