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The US 30-year mortgage rate climbs above 3% for the first time since July as Treasury yields rise

The US 30-year mortgage rate climbs above 3% for the first time since July as Treasury yields rise


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The average 30-year fixed mortgage rate rose to 3.02% from 2.97% this week, Freddie Mac said Thursday.



The reading marks the first time the rate stood above 3% since July. Rates have now held steady or increased for five weeks straight.



Mortgage rates typically move in tandem with the 10-year Treasury yield, and optimism toward the US recovery has recently led investors to dump government bonds and send yields soaring.



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After setting more than 15 record lows since the start of the pandemic, the benchmark mortgage rate is finally rebounding.The average 30-year fixed mortgage rate rose to 3.02% this week from 2.97%, mortgage-finance giant Freddie Mac said Thursday. The reading marks the first time the rate has landed above 3% since July. The rate has now increased or held steady for five weeks straight, signaling the low borrowing costs that fueled the housing market's boom are reversing.The 15-year fixed mortgage rate averaged 2.34%, holding steady from last week's reading. The 5-year Treasury-indexed hybrid adjustable rate averaged 2.73%, down from 2.99%.Mortgage rates began to plummet in spring 2020 as the pandemic first hit the US economy. The Federal Reserve's move to cut interest rates to zero dragged borrowing costs lower, and follow-up guidance hinting at years of ultra-easy monetary conditions kept mortgage rates tumbling.
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