Mortgage rates in the US rose to the highest level since the middle of March.
The average for a 30-year, fixed loan was 6.43%, up from 6.39% a week earlier, Freddie Mac said in a statement Thursday.
US homebuyers have been squeezed by interest rates that started to surge last year. The market is also constrained by a lack of homes for sale, as owners are reluctant to give up loans with lower rates.
Contracts to buy existing homes fell last month by the most since September, with National Association of Realtor’s Chief Economist Lawrence Yun cautioning that limited supply isn’t meeting demand.
Signs that inflation is decelerating may send mortgage rates down over the course of the year, according to Sam Khater, Freddie Mac’s chief economist.
“Incoming data suggest the housing market has stabilized from a sales and house-price perspective,” Khater said. “The prospect of lower mortgage rates for the remainder of the year should be welcome news to borrowers who are looking to purchase a home.”
A buyer with a $600,000 mortgage would face monthly payments of $3,765, up from $3,258 a year earlier.
This article was provided by Bloomberg News.