US mortgage rates rise; 30-year at 5.27%, highest since 2009

WASHINGTON (AP) — Average long-term U.S. mortgage rates resumed their ascent this week, as the key 30-year loan reached its highest point since 2009.

The increases came in the week preceding the widely anticipated action by the Federal Reserve, announced Wednesday, to intensify its fight against the worst inflation in 40 years by raising its benchmark interest rate by a half-percentage point and signaling further large rate hikes to come. The Fed’s move, its most aggressive since 2000, will bring higher costs for mortgages as well as credit cards, auto loans and other borrowing for individuals and businesses.

Mortgage buyer Freddie Mac reported Thursday that the 30-year rate rose to 5.27 from 5.1 percent last week, when it edged down after seven weeks of increases. By contrast, the average rate stood at 2.96 percent a year ago. The average rate on 15-year, fixed-rate mortgages, popular among those refinancing their homes, jumped to 4.52 from 4.4 percent last week.

With inflation at a fourdecade high, rising mortgage rates, elevated home prices and tight supply of homes for sale, homeownership has become less attainable, especially for firsttime buyers.