WASHINGTON (AP) – Long-term mortgage rates in the United States fell modestly this week, but interest rates on the key 30-year loan are at decade highs.
As reported by Freddie Mac on Thursday, the 30-year mortgage rate moved down from 5.3% to 5.25 percent. In comparison, the average rate last year stood at 3%.
By increasing its benchmark interest rate by a half-a-percentage point earlier this month, the Federal Reserve intensified its fight against the worst inflation in 40 years. With the Fed’s move, it will be more expensive to borrow money, whether for mortgages, credit cards, auto loans, or any other reason.
The government reported last week that producer prices in the United States rose 11% in April over a year earlier, a substantial gain that indicates a prolonged period of high inflation for consumers and businesses. The government reported last week that consumer prices climbed 8.3% last month compared with a year earlier, just below the 8.5% increase in March, which was the biggest in almost 30 years.