Mortgage rates in USA have reached seven-year high

Mortgage rates in USA have reached seven-year high
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This week, mortgage rates in the USA have reached the maximum level for the past seven years, according to a weekly survey of the state mortgage company Freddie Mac.

The average fixed interest rate for a 30-year mortgage has grown 5 basis points in a week — up to 4.66% per annum. Fifteen-year loans are now provided on average at 4.15% versus 4.08% a week earlier.

The rates do not take into account potential commissions and other payments related to mortgages, the report says.

The rise in the price of mortgage loans is due to the growth in the yield of US government bonds.

At the end of last year, investors began selling government bonds in anticipation that an increase in the US budget deficit would push the government to increase borrowing volumes. This trend was subsequently supported by positive data on the US economy and increased inflation.