LOS ANGELES (AP) — The average long-term U.S. mortgage rate climbed this week to a new high for the year, pushing up borrowing costs for prospective homebuyers already facing heightened competition in a housing market short on homes for sale.
Mortgage buyer Freddie Mac said Thursday the average rate on the benchmark 30-year home loan rose to 6.81% from 6.71% last week.
A year ago, the rate averaged 5.30%. The increase lifts the average rate to its highest level since it surged to 7.08% in early November.
High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford.
