US 30-Year Mortgage Rate Just Shy of 7% Weighs on Home Purchases
- Applications index for home purchases lowest since February
- Expectations for fewer Fed rate cuts keep financing costs high
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US mortgage rates edged up to just shy of 7% at the turn of year and a gauge of home-purchase applications tumbled to the lowest level since February, adding to evidence of a struggling housing market.
The contract rate on a 30-year mortgage rose 2 basis points to a six-month high of 6.99% in the period ended Jan. 3, according to Mortgage Bankers Association data released Wednesday. Over the last four weeks, home financing costs have increased nearly one third of a percentage point.