US 30-year fixed-rate mortgage rate breaks above 7%
WASHINGTON, Jan 16 (Reuters) - The average rate on the popular U.S. 30-year fixed-rate mortgage increased above 7% this week for the first time in eight months, which together with high house prices could weigh on home sales early in the year.
The average rate on the 30-year fixed-rate mortgage rose to 7.04%, mortgage finance agency Freddie Mac said on Thursday. It was the first time since May that the rate broke above 7% and was up from 6.93% last week.
The rate averaged 6.60% during the same period a year ago.
Mortgage rates have marched higher in tandem with U.S. Treasury yields, which have surged amid economic resilience and investor worries that President-elect Donald Trump's proposed policies, including tax cuts, higher tariffs on imported goods and mass deportations, could fan inflation.
The Federal Reserve has lowered its projected interest rate cuts for this year to only two from the four it estimated in September when it kicked off its policy easing cycle.
(Reporting By Lucia Mutikani; Editing by Andrea Ricci)
((Lucia.Mutikani@thomsonreuters.com; 1 202 898 8315; Reuters Messaging: lucia.mutikani.thomsonreuters.com@reuters.net))
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