U.S. Mortgage Rates Rise To Highest Level In More Than 2 Years

WASHINGTON (AP) – Long-term U.S. mortgage rates edged up this week to the highest levels in more than two years. Investors are bidding up rates under the belief that inflation and economic growth will rise with the incoming Trump administration. Long-term mortgage rates have risen nine straight weeks.

         Mortgage buyer Freddie Mac on Thursday reported the rate on 30-year fixed-rate loans rose to an average 4.32 percent from 4.30 percent last week. That average is at its highest since April 2014. It's a sharp increase from a 30-year rate that averaged 3.65 percent for all of 2016, the lowest level recorded from records going back to 1971.

         The average for a 15-year mortgage rose to 3.55 percent from 3.52 percent last week.

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         Rates began to climb after the Nov. 8 election of Donald Trump. Investors have bid rates higher out of the belief that the president-elect's plans for tax cuts and higher infrastructure spending will increase economic growth and inflation.

 

 

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