(Reuters) The average rate on the US 30-day mortgage rose to 5.20% in the week that ended April 15, an uptick from 5.13% the prior week.
The continued rise in home-financing costs come as investors project a further tightening of the economy. The central bank is expected to announce the cutting down of its portfolio of $8.5 trillion in stimulus package at its May 3-4 meeting.
The rising mortgage has now seen overall loan demand go lower. The Purchase Composite Index, which assesses applications, fell by 3.0% to 254.0. The mortgage refinance index also plunged by 8% to its lowest since March 2019.
At a 5.20% rate, the mortgage rate is the highest in 12 years, having risen by 2 percentage points from the prior year. The rate has risen by 1.14% in the last eight weeks, the quickest jump since 2013.
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