Interest rates on 30-year mortgages rose for a third straight week, hitting the highest level in more than four years as investors continued to express worries about inflation, the Associated Press reports.
Freddie Mac, the mortgage company, reported Thursday that rates on 30-year, fixed-rate mortgages increased to a nationwide average of 6.78 percent this week, up from 6.71 percent last week. It was the highest level for 30-year mortgages since they averaged 6.81 percent the week of May 24, 2002.
While the housing sector has enjoyed five boom years powered by the lowest mortgage rates in four decades, housing sales are expected to decline by 7 percent or more this year as higher mortgage rates make home ownership more costly.
