Average long-term U.S. mortgage rate climbs above 7% to highest level since late November
==========
The average long-term U.S. mortgage rate has risen above 7% this week, reaching its highest level in nearly five months. The average rate on a 30-year mortgage rose to 7.1% from 6.88% last week, according to mortgage buyer Freddie Mac. This is an increase from the rate of 6.39% a year ago. The rise in mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting their affordability. The U.S. housing market is already constrained by a shortage of homes for sale and rising home prices. The increase in rates has led potential homebuyers to decide whether to buy before rates rise further or wait for potential decreases later in the year. Mortgage rates are influenced by factors such as the bond market's reaction to the Federal Reserve's interest rate policy and the movements in the 10-year Treasury yield. Home loan rates have been drifting higher in recent weeks due to stronger-than-expected reports on employment and inflation, which have raised doubts about when the Fed might start lowering its benchmark interest rate. Economists expect mortgage rates to ease moderately later this year, but forecasts generally call for the average rate to remain above 6%. The rise in mortgage rates is a setback for home shoppers during the spring home-buying season, traditionally the busiest time of the year for the housing market. Sales of previously occupied U.S. homes fell last month due to elevated mortgage rates and rising prices. The cost of refinancing a home loan has also increased this week, with the average rate on a 15-year fixed-rate mortgage rising to 6.39% from 6.16% last week.