clear
Thursday October 18th, 2018 1:08AM

Mortgage rates leap to 7-year highs; 30-year at 4.90 percent

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — Long-term U.S. mortgage rates leaped this week to their highest levels in seven years amid global anxiety over rising interest rates that has gripped financial markets.

Costs for would-be homebuyers are climbing. Mortgage buyer Freddie Mac said Thursday the rate on 30-year, fixed-rate mortgages jumped to an average 4.90 percent this week from 4.71 percent last week. That's the highest level for the benchmark rate since April 2011. A year ago, it stood at 3.91 percent.

The average rate on 15-year, fixed-rate loans rose to 4.29 percent this week from 4.15 percent last week.

The Federal Reserve recently signaled its confidence in the economy by raising a key interest rate for a third time this year, forecasting another rate hike before year's end.

It was the central bank's third increase in short-term interest rates this year, with one more expected before year's end. Strong economic data and a positive outlook from Fed officials have spurred a sell-off in U.S. Treasury bonds, especially longer-term bonds, stoking concerns over even higher interest rates.

As anxiety over higher rates spiraled, financial markets around the world suffered a massive sell-off. U.S. stocks marked their biggest drop since February on Wednesday, as the Dow Jones industrial average slid 831 points. Stocks sank again on Wall Street on Thursday morning.

President Donald Trump stepped in to assert that the Fed "is making a mistake" with its rate increases and accused the central bank of having "gone crazy."

Interest rates on Treasury bonds have climbed to the highest levels in seven years as their prices have dropped. The yield on the key 10-year Treasury note, which tends to influence mortgage rates, was at 3.16 percent Thursday morning.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week.

The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates.

The average fee on 30-year fixed-rate mortgages rose to 0.5 point from 0.4 point last week. The fee on 15-year mortgages also increased to 0.5 point from 0.4 point.

The average rate for five-year adjustable-rate mortgages jumped to 4.07 percent from 4.01 percent last week. The fee was unchanged at 0.3 point.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services, AP Business - Personal Finance, AP Business - Real Estate
© Copyright 2018 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Mortgage rates leap to 7-year highs; 30-year at 4.90 percent
Mortgage rates leap to 7-year highs; 30-year average at 4.90 percent
11:32AM ( 3 minutes ago )
The Latest: Judge rejects voter registration extension
A federal judge is rejecting a push to extend Florida's voter registration deadline because of Hurricane Michael, saying there's "no justification" to do so
11:25AM ( 10 minutes ago )
McConnell, GOP pushing 'mob behavior' branding of Dems
Senate Majority Leader Mitch McConnell ramps up argument that Democrats and their liberal allies are resorting to 'mob behavior' tactics
11:11AM ( 25 minutes ago )
Associated Press (AP)
US, Russian astronauts safe after emergency landing
Two astronauts from the U.S. and Russia are safe after an emergency landing in the steppes of Kazakhstan following the failure of a Russian booster rocket carrying them to the International Space Station
10:35AM ( 1 hour ago )
US consumer prices up slight 0.1 percent in September
US consumer prices up slight 0.1 percent in September as energy prices retreated after big gain
8:56AM ( 2 hours ago )
As markets swoon, finance chiefs urge US, China to cool it
World Bank, IMF heads urge U.S., China to play by rules, fix, not break world trade system as tumbling share prices underscore risks
8:01AM ( 3 hours ago )
AP Business
Trump prays for hurricane victims, criticizes Democrats
In Pennsylvania for a rally, Trump offers thoughts and prayers for hurricane victims and sharp criticism for Democrats
5:17AM ( 6 hours ago )
Trump campaigns in Pennsylvania as hurricane pounds Florida
President Donald Trump rallies Republicans in Pennsylvania as Hurricane Michael pounds Florida's Panhandle
10:46PM ( 12 hours ago )
Trump campaigns in Pennsylvania as hurricane hits Florida
President Donald Trump rallied Republicans in Pennsylvania as Hurricane Michael pounds Florida's Panhandle
7:56PM ( 15 hours ago )
AP Business - Personal Finance
US mortgage rates edge lower; 30-year rate at 4.71 percent
US mortgage rates edge lower; 30-year average rate at 4.71 percent
11:56AM ( 6 days ago )
US construction spending up slightly 0.1 percent in August
US construction spending edged up slight 0.1 percent in August, led by government projects
10:24AM ( 1 week ago )
US pending home sales fell in August
US pending home sales fell in August amid rising prices, mortgage rates and limited inventory
10:02AM ( 2 weeks ago )
AP Business - Real Estate
The Latest: Judge rejects voter registration extension
A federal judge is rejecting a push to extend Florida's voter registration deadline because of Hurricane Michael, saying there's "no justification" to do so
11:25AM ( 10 minutes ago )
McConnell, GOP pushing 'mob behavior' branding of Dems
Senate Majority Leader Mitch McConnell ramps up argument that Democrats and their liberal allies are resorting to 'mob behavior' tactics
11:11AM ( 25 minutes ago )
English FA to hold special meeting for vote on Wembley sale
The English Football Association will hold a special meeting to vote on whether to sell Wembley Stadium to Shad Khan, the owner of the Jacksonville Jaguars NFL franchise and London-based Premier League club Fulham
10:59AM ( 37 minutes ago )
Chelsea chairman says don't make club join 'great unwashed'
Chelsea chairman Bruce Buck says big teams should not be forced to join the "great unwashed," railing against attempts to make soccer more equal
10:58AM ( 37 minutes ago )
US stocks slip lower in wobbly trading, but losses ease
U.S. stocks are mostly lower in unsteady trading one day after their biggest drop since February, but a report indicating that inflation remains limited seemed to calm U.S. investors
10:54AM ( 41 minutes ago )