- Average 30-year loan rate climbs to 3.64% from 3.58%
- Central bank minutes boost bets of June interest-rate increase
U.S. mortgage rates rose, boosting home-loan costs from the lowest levels since 2013, as investors speculated on the timing of the Federal Reserve’s next interest rate increase.
The average rate for a 30-year fixed mortgage was 3.64 percent, up from 3.58 percent last week, Freddie Mac said in a statement Thursday. The average 15-year rate rose to 2.89 percent from 2.81 percent, according to the McLean, Virginia-based mortgage-finance company.
Mortgage costs are tracking a jump in Treasury yields after last week’s release of minutes from the Federal Open Market Committee’s April 27 meeting. At the time, most members considered a June rate increase appropriate if the economy continued to improve, the minutes show. There’s a 32 percent chance the central bank will boost rates at next month’s meeting, up from just 4 percent two weeks ago, according to data compiled by Bloomberg on federal funds futures.
The average 30-year mortgage rate has been below 4 percent since the beginning of the year, helping to bolster demand for home purchases. Contracts to buy previously owned homes rose 5.1 percent in April to the highest level since February 2006, the National Association of Realtors reported Thursday.